Identify an Example of a Stock Variable

question 27

Multiple Choice

Identify an example of a stock variable.

• A) the growth in investment in an economy
• B) the change in the price level in an economy over the years
• C) the number of unemployed people in an economy in a particular year
• D) the increase in the money supply in an economy
• E) the fall in consumer spending during two consecutive years

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Definitions:

Direct Labor

The labor cost of workers directly involved in the production of goods or services.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process, costing each process separately.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units that could have been produced with those costs.

Direct Materials

Materials in their unprocessed state that can be directly linked to the production of a particular item.