In the Chapter You Read That It Costs the U

question 43

Essay

In the chapter you read that it costs the U.S.Treasury's Bureau of Engraving and Printing around nine cents to print a note (currency), whether that bill is a one-dollar or one-hundred dollar bill.It seems the Treasury could generate a nice profit for the government by simply printing currency and using this currency to purchase the goods and services the government needs.In fact, this seems to be a way to eliminate the problem of budget deficits for the U.S.government.Comment on this idea.

---

Definitions:

Actual Costs

are the genuine expenditures incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Standard Costs

Pre-determined or benchmark costs for products, operations, or activities, used for budgeting purposes and performance evaluation against actual costs.

Direct Labor Time Variance

The difference between the actual time taken to perform work and the estimated standard time, adjusted for units produced.

Standard Costs

Predetermined costs to manufacture a product or deliver a service, used for budgeting and performance evaluation.