Which of the Following Is the Best Indicator of the Performance

question 79

Multiple Choice

Which of the following is the best indicator of the performance of the national economy?

• A) the budget deficit of the federal government
• B) the stock of capital goods (machinery) in the nation
• C) the nation's stock of precious metals
• D) the balance of trade with other nations
• E) the value of the final goods and services produced in the nation

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Definitions:

Amortization

The periodic transfer of the cost of an intangible asset to expense or of a bond discount to interest expense.

Prime Cost

The direct costs of manufacturing a product, which include the raw materials and direct labor expenses.

Plant Janitor's Wages

The wages paid to janitorial staff within a manufacturing plant, considered part of factory overhead costs.

Machine Operator Wages

Compensation paid to workers who operate machinery as part of the manufacturing process.