Which of the Following Items Is Counted as Part of Government

question 102

Multiple Choice

Which of the following items is counted as part of government purchases?

• A)The federal government pays $2,000 in Social Security benefits to a retired person.
• B)The city of Athens,Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards.
• C)The state of Nebraska pays $1,000 to help a low-income family pay its medical bills.
• D)All of the above are correct.

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Definitions:

Direct Labor Hour

The amount of time spent by workers directly manufacturing a product or providing a service, often used in costing and operational efficiency analysis.

Molding Department

A specialized manufacturing sector responsible for shaping materials using rigid frames or models called molds.

Overhead Rate

A measure used to allocate the costs of indirect expenses to specific cost objects based on a certain base, such as labor hours or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or company to allocate indirect costs to cost objects.