Compared to High-Income Developed Countries, the Per Person Income Levels

question 88

Multiple Choice

Compared to high-income developed countries, the per person income levels of poorer less developed countries are somewhat understated because

• A) the GDP figures omit the production within the household sector, which is generally larger in the high-income countries.
• B) the GDP figures omit the production within the household sector, which is generally larger in the poorer countries.
• C) the GDP figures omit net exports, which are generally larger in the high income countries.
• D) the GDP figures omit net exports, which are generally larger in the poorer countries.

---

Definitions:

Fixed Overhead Budget Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead costs incurred.

Standard Costing System

An accounting system that uses standard costs for cost control and decision-making purposes.

Direct Labour Hours

The number of hours worked by employees who are directly involved in the production of goods or services.

Standard Costing Systems

A cost accounting system that estimates the cost of products or services by assigning expected costs for materials, labor, and overhead to the actual production volumes.