In 2011

question 64

Multiple Choice

In 2011,

• A)the House of Representatives dramatically increased the number of earmarks in their spending bills while the Senate dramatically decreased the number of earmarks in their spending bills.
• B)the Senate dramatically increased the number of earmarks in their spending bills while the House of Representatives dramatically decreased the number of earmarks in their spending bills.
• C)both the House of Representatives and the Senate dramatically increased the number of earmarks in their spending bills.
• D)the House and the Senate agreed to a two-year moratorium on earmarks in spending bills.

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs - direct labor, direct materials, and both variable and fixed manufacturing overhead - in the cost of a product.

Product Cost

The total cost associated with making or acquiring a product, including materials, labor, and overhead expenses.

Variable Costing

A costing method that includes only variable manufacturing costs in product costs and treats fixed manufacturing costs as period costs.

Finished Goods

Completed products ready for sale or shipment to customers, found as an inventory category in the balance sheet.