Real GDP Is the Value of Final Goods and Services

question 81

Multiple Choice

Real GDP is the value of final goods and services produced in a year

• A)expressed in the prices of a base year.
• B)minus depreciation.
• C)during a recession.
• D)minus the value of all the intermediate goods produced.
• E)expressed in the prices of that same year.

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Definitions:

Direct Materials Cost Variance

A measure that evaluates the difference between the actual costs of direct materials used in production and the standard costs.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials used in production and the standard cost, indicating how much more or less was spent than expected.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Flexible Budget Sales

Projected sales figures that can adjust based on changes in production levels or market conditions.