Which of the Following Contributed to the Turn-Around in the Government

question 127

Multiple Choice

Which of the following contributed to the turn-around in the government budget from a surplus in the early 2000s to record deficits by the end of the decade?

• A) An increase in household saving.
• B) An increase in business saving.
• C) An increase in tax revenues because of a recession.
• D) An increase in government spending on homeland security and wars.

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Definitions:

Traced Costs

Direct costs, such as materials and labor, that can be directly linked to the production of specific products or services.

Drop the Product

The decision to discontinue the production and sale of a particular product, often due to low demand or profitability.

Activity-based Approach

A methodological approach that focuses on identifying and managing activities as the fundamental cost objects, aiming to improve business processes and allocate costs more precisely.

Job Costing Approach

A system used to assign manufacturing costs to an individual product or batches of products, commonly used in industries where products are distinct like construction or custom manufacturing.