The Value of All Goods and Services Produced by the Domestic

question 172

Multiple Choice

The value of all goods and services produced by the domestic economy over a one-year period is called ________.

• A) gross domestic product (GDP)
• B) purchasing power parity (PPP)
• C) gross national product (GNP)
• D) human development index (HDI)

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Definitions:

Unit Product Cost

The total cost (fixed and variable) assigned to a unit of product, determining its cost of production per unit.

Variable Costing

An accounting method that only allocates variable costs to products, excluding fixed overhead costs.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities of the business.

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product (including variable and fixed overhead costs) are considered product costs.