Which of the Following Was an Argument for Using Fiscal

question 120

Multiple Choice

Which of the following was an argument for using fiscal policy in situations like the Great Recession?

• A)Congress can act quickly.
• B)The size of a recessionary gap may require the use of both fiscal and monetary policy.
• C)Once the federal funds rate is reduced to zero, monetary policy is less effective.
• D)all of the above

Learn about the calculation and importance of a budgeted production in units.

Understand the characteristics and purpose of a capital expenditures budget.

Gain knowledge on calculating direct labor cost budget and its importance.

Learn how to prepare a flexible selling expense budget.

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Definitions:

Overhead Rate

A measure used to allocate the costs of indirect expenses to specific cost objects based on a certain base, such as labor hours or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or company to allocate indirect costs to cost objects.

Direct Labor Hours

The total time workers spend on creating a product or service, often used as an allocation base in cost accounting.

Overhead Assigned

The process of allocating indirect costs, such as utilities or rent, to specific cost objects like products or departments.