Which of the Following Transactions Is Included in Gross Domestic

question 177

Multiple Choice

Which of the following transactions is included in Gross Domestic Product?

• A) A Social Security check received by a retired couple
• B) A gift card that a mother gives her son
• C) A used textbook that one student gives another student in exchange for an iPod
• D) Tips received by a waitress who reports them to the IRS

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Definitions:

Net Operating Income

The income generated from normal business operations after subtracting operating expenses but before interest and taxes.

Spending Variance

The discrepancy between the budgeted or planned amount of expense and the actual amount spent, often analyzed to understand financial performance.

Materials

The raw goods and components used in the manufacturing or production process to create final products.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a specific period.