The Expenditure Approach to Calculating GDP Includes

question 24

Multiple Choice

The expenditure approach to calculating GDP includes

• A) consumption.
• B) intermediate goods.
• C) wage income.
• D) net factor payments.
• E) taxes.

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Definitions:

Costs

The amount of money expended or resources used in the production of goods or in providing services.

Average Cost Method

An inventory valuation method wherein the cost of goods sold and ending inventory is determined by taking the weighted average of all purchases.

Periodic Inventory System

An inventory accounting system where updates to the inventory accounts occur at specific intervals, such as monthly or yearly, as opposed to continuously.

Inventory Cost

The total cost associated with buying and preparing items for sale, including purchase prices, shipping, handling, and storage.