Total Factor Productivity Growth Involves

question 43

Multiple Choice

Total factor productivity growth involves

• A) spending on national defence and the environment.
• B) research and development by firms, education, and training on the job.
• C) increasing the size of government.
• D) increasing consumption per worker and income per worker.
• E) favourable government policies.

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Definitions:

Standard Costs

Standard costs are predetermined costs established as targets for the production of goods or rendering of services, used as benchmarks to measure performance.

Actual Costs

The real expenses incurred or paid during a project or operation, as opposed to budgeted or estimated costs.

Differences

Refers to the disparities or variations that exist between two or more items, figures, or entities, often used in financial analysis and auditing.

Preset Costs

Preset costs are predetermined expenses that a company expects to incur in the carrying out of its operations.