Which of the Following Is an Injection into the Circular

question 52

Multiple Choice

Which of the following is an injection into the circular flow?  

• A) consumption 
• B) exports 
• C) taxes 
• D) saving

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Definitions:

Conversion Cost

The total expenses of direct labor and manufacturing overheads used in transforming raw materials into completed goods.

Manufacturing Overhead

All indirect costs associated with the production process, including salaries of supervisors, maintenance, and utilities in the manufacturing facilities.

Product Costs

Costs that are directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that are directly traceable and integral to the finished product in the manufacturing process.