A Good Is Produced by a Firm in 2007,added to the Firm's

question 290

Multiple Choice

A good is produced by a firm in 2007,added to the firm's inventory in 2007,and sold to a household in 2008.It follows that

• A) the value of the good is added to the investment category of 2007 GDP,added to the consumption category of 2008 GDP,and subtracted from the investment category of 2008 GDP.
• B) the value of the good is added to the investment category of 2007 GDP,added to the consumption category of 2008 GDP,and not included in the investment category of 2008 GDP.
• C) the value of the good is added to the investment category of 2007 GDP,subtracted from the consumption category of 2008 GDP,and not included in the investment category of 2008 GDP.
• D) the value of the good is added to the investment category of 2007 GDP,subtracted from the consumption category of 2008 GDP,and added to the investment category of 2008 GDP.

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Definitions:

Lower Of Cost Or Market

An accounting principle requiring companies to value inventory at the lower of its historical cost or current market price.

Inventory Valuation

The cost associated with an entity's inventory at the end of a reporting period, calculated using methods like FIFO, LIFO, or Weighted Average.

Inventory Control

The supervision of non-capitalized assets (inventory) and stock items, particularly managing the quantity of stock on hand to prevent stockouts or excessive oversupply.

Petty Cash Voucher

A document used to record and authorize the payment of small, immediate expenses from a petty cash fund.