Which of the Following Best Expresses the Central Idea of Countercyclical

question 44

Multiple Choice

Which of the following best expresses the central idea of countercyclical fiscal policy?

• A) Planned deficits are experienced during economic booms and planned surpluses during economic recessions.
• B) The balanced-budget approach is the proper criterion for determining annual budget policy.
• C) Actual deficits should equal actual surpluses during a period of deflation.
• D) Deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.

Appreciate the importance of change management in ERP implementation.

Identify the processes involved in ERP and their origination and termination departments.

Understand the difference and relationship between gross margin percentage and contribution margin.

Comprehend the importance and computation of the times interest earned ratio and its relevance to net income and interest expense.

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Definitions:

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity expected to be used, measured in terms of cost.

Direct Materials Purchases Variance

This measures the difference between the actual cost of direct materials purchased and the expected (or standard) cost of those materials.

Actual Results

The real outcomes or data achieved, as opposed to forecasts or projections.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost, used for budgeting and cost control.