Which of the Following Transactions Adds to U

question 156

Multiple Choice

Which of the following transactions adds to U.S. GDP for 2010?

• A)In 2010, Marvin Windows manufactures 20 windows that will eventually be installed in an office building in Minneapolis. The windows remain in Marvin's inventory at the end of 2010.
• B)An Irish marketing consultant works in Boston during the summer of 2010 and earns $50,000 during that time.
• C)When Tim and Tina were both single, they lived in separate apartments and each paid $750 in rent. Tim and Tina got married in 2010 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,550 per month.
• D)All of the above transactions add to U.S. GDP for 2006.

Comprehend the significance of opportunity costs in managerial decision-making.

Understand classification of costs for managerial control, including direct and indirect costs, and the relevance of such classifications.

Recognize the impact of production volume on unit cost distribution, specifically how variable and fixed costs per unit are affected.

Learn the ethical considerations in managerial accounting, including handling of conflicts and employee responsibility.

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Definitions:

Principal-Agent Problem

A dilemma in which one party (the agent) is supposed to act in the best interest of another party (the principal) but may act in their own interest instead, leading to inefficiencies.

Pablo Picasso

A Spanish painter, sculptor, printmaker, ceramicist, and stage designer considered one of the greatest and most influential artists of the 20th century.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Marginal Resource Cost

The extra expense resulting from the consumption of an additional unit of a resource.