All of the Following Are Disadvantages of Fiscal Policy, Except

question 65

Multiple Choice

All of the following are disadvantages of fiscal policy, except:

• A)a long implementation lag.
• B)that it may be politically motivated.
• C)that it may be economically motivated.
• D)that congress must approve the budgets and develop the tax laws.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated manufacturing overhead costs to individual units of product based on a chosen activity base.

Washing Mitt

A glove-like cleaning tool used for washing surfaces, especially in automotive detailing, made of soft fibers to avoid scratching.

Activity-Based Costing

A method of cost accounting that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Overhead Cost Per Unit

The allocation of total overhead costs to individual units of production, providing a per-unit cost of overhead expenses.