Autonomous Expenditure Refers to

question 98

Multiple Choice

Autonomous expenditure refers to

• A) aggregate expenditure solely prompted by policy.
• B) changes in short-run aggregate supply.
• C) aggregate expenditure that does not change when real GDP changes.
• D) aggregate expenditure that varies because of changes in real GDP.

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Definitions:

Break-even Sales

refers to the amount of revenue needed to cover all fixed and variable costs, at which point a business neither makes a profit nor incurs a loss.

Absorption Costing

A technique in accounting that rolls all manufacturing expenses including direct material costs, direct labor, and every overhead, regardless if fixed or variable, into the overall cost of a product.

Unit Product Cost

The overall expense involved in creating one unit of a product, encompassing direct materials, direct labor, and distributed overhead costs.

Absorption Costing

An accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.