The Recognition Time Lag Recognizes That It Takes Time

question 200

Multiple Choice

The recognition time lag recognizes that it takes time

• A) to collect information about the state of the economy.
• B) to get politicians to agree on the best policy to enact.
• C) for any change in policy to take effect and for people to recognize that the policies are effective.
• D) for the politicians to enact the policy once the need for change has been recognized.

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Definitions:

T-Accounts

A visual representation used in accounting to depict the debits and credits of an account, showing two sides of transactions within a ledger.

Transactions

Financial activities or exchanges between parties that involve the transfer of goods, services, or funds.

Overapplied Overhead

When the overhead costs allocated for manufacturing are higher than the actual overhead expenditures.

Manufacturing Overhead

All manufacturing costs excluding direct materials and direct labor, such as utilities, depreciation, and salary of supervisors.