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Describe the intended effects of the first-time home buyer tax credits granted by Congress and many state governments in 2009 and 2010.In addition,describe in detail the unintended effect of this type of legislation.
Inventory Levels
The quantity of goods and materials on hand at any given time in a company.
Absorption Costing
An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.
Variable Costing
A cost system that excludes fixed costs from product costs and writes off all fixed costs against income in the year that the costs are incurred. Also called direct costing.
Step-fixed Costs
Expenses that remain constant for a set level of production or output, but can change when a certain threshold is crossed.
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