To Calculate GDP Using the Value-Added Method, One Would Add

question 261

Multiple Choice

To calculate GDP using the value-added method, one would add up

• A)the market value of final goods and services produced during a particular period.
• B)only the value added by the underground economy.
• C)the value added by each firm involved in the production of final goods and services.
• D)the market value of intermediate goods and services produced during a particular period.
• E)the after tax profits of every firm in the economy.

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Definitions:

Production Budget

An estimate of the total amount of production, often expressed in units, that a company plans to manufacture during a specific period.

Finished Goods Inventory

The stock of completed products that are ready to be sold but are still in the company's inventory.

Selling And Administrative Budget

Forecasts expected expenses related to selling the product and managing the business, excluding manufacturing costs.

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period, often used to assess whether the entity can maintain its operations and obligations.