When the Production Process Extends Over More Than One Year

question 42

Multiple Choice

When the production process extends over more than one year, the value of the final product is:

• A)included in GDP for the year in which production began.
• B)included in GDP for the year in which production was completed.
• C)allocated to GDP in each year according to the value added in that year.
• D)allocated equally to GDP in each year.

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Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation that doubles the straight-line depreciation rate and applies it to the remaining book value each year.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

High Technology

Refers to the most advanced technology available, often characterized by innovative, cutting-edge developments in fields such as information technology, robotics, and biotechnology.

Goodwill

An intangible asset that arises when a business is acquired for more than the sum of the fair value of its identifiable tangible and intangible assets and liabilities.