How Is Net National Product (NNP)calculated

question 29

Multiple Choice

How is net national product (NNP) calculated?

• A)Saving is subtracted from the total income of a nation's citizens.
• B)Saving is added to the total income of a nation's citizens
• C)Depreciation losses are subtracted from the total income of a nation's citizens.
• D)Depreciation losses are added to the total income of a nation's citizens.

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Definitions:

FIFO

An inventory valuation method known as "First-In, First-Out," where goods purchased or produced first are sold or used first.

Perpetual Inventory System

An inventory management method where inventory levels are updated in real-time following each sale or purchase transaction.

Net Income Manipulation

The practice of using accounting tricks to make a company's financial performance appear better than it actually is.

Average Cost Formula

A method used in accounting and inventory management to determine the cost of goods sold and the ending inventory value by calculating the average cost of all similar items.