According to the CPI, What Is the Largest Spending Category

question 77

Multiple Choice

According to the CPI, what is the largest spending category in the United States?

• A) food
• B) education
• C) housing
• D) medical care
• E) transportation

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Definitions:

Manufacturing Overhead

Manufacturing overhead includes all production costs other than direct labor and direct materials, such as maintenance, depreciation, and utilities.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Overapplied

A situation in cost accounting where the applied manufacturing overhead cost is more than the actual overhead incurred.

Underapplied

A term often used in cost accounting to denote when the allocated overhead or indirect costs are less than the actual overhead incurred.