Figure 12-1 -Refer to Figure 12-1.At Point J in the Figure Above,which

question 47

Multiple Choice

Figure 12-1
-Refer to Figure 12-1.At point J in the figure above,which of the following is true?

• A)Aggregate expenditure is less than GDP.
• B)The economy has achieved macroeconomic equilibrium.
• C)Actual inventories are less than planned inventories.
• D)GDP will be decreasing.

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Definitions:

Direct Materials Cost

The cost of raw materials and components that are directly traceable to the production of goods.

Direct Labor Cost

The cost associated with the labor of employees directly involved in the production of goods or services.

Direct Labor-Hours

A measure of the time spent by workers directly creating a product, which is used to allocate labor costs properly.

Activity Cost Pools

Activity cost pools are groupings of individual costs, classified based on the activities that incur costs within an activity-based costing system to facilitate more accurate product costing.