In a Database Created Using an REA Model,the Bill of Materials

question 58

Multiple Choice

In a database created using an REA model,the Bill of Materials entity is most analogous to

• A)the "bill" that can be sent to the customer who order the finished good(s).
• B)the "recipe" needed to produce the finished good(s).
• C)the "receipt" for the purchase of specific raw materials.
• D)the "audit trail" that can be used to verify a finished good(s)was actually produced.

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Definitions:

Marginal Propensity

The ratio of the change in an aggregate economic quantity to an adjustment in some causal variable, particularly the change in consumption resulting from a change in income.

U.S. Price Level

A measure of the average prices of goods and services across the United States economy, indicating the purchasing power of money in the U.S.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with foreign countries.

Price Level

The price level is an index that measures the average prices of goods and services across an economy, indicative of inflation or deflation.