Government Purchases Include All of the Following Except

question 127

Multiple Choice

Government purchases include all of the following except:

• A)Social Security benefits paid by the federal government.
• B)the construction of a new court house built by a county government.
• C)the salary paid to an elementary school teacher employed by a local public school district.
• D)the purchase of new military hardware by the U.S. Army.

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Definitions:

Manufacturing Costs

The total costs involved in making products which can include direct materials, direct labor, and manufacturing overhead.

Direct Material

These are the raw materials and components that are consumed directly in the manufacture of a product.

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.

Factory Depreciation

The decrease in value of manufacturing equipment and facilities over time due to wear and tear or obsolescence.