The Components of the Expenditure Approach to Measuring GDP Include

question 377

Multiple Choice

The components of the expenditure approach to measuring GDP include all of the following EXCEPT

• A) net exports.
• B) government expenditure on goods and services.
• C) investment.
• D) the implicit payments for unpaid household work.

---

Definitions:

Variable Costing

An accounting method that only includes direct variable costs in product cost calculations, excluding fixed manufacturing overhead.

Absorption Costing

An accounting practice that includes every cost associated with manufacturing, like direct materials, direct labor, and variable as well as fixed overhead expenditures, in determining a product's cost.

Units Produced

A measure of the total number of complete units manufactured or completed in a given period.

Units Sold

The total quantity of products that a company has sold to its customers during a particular time frame.