A Measure of the Output of Goods and Services in an Economy

question 105

Multiple Choice

A measure of the output of goods and services in an economy is called:

• A) output
• B) money supply
• C) gross domestic product
• D) velocity

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Definitions:

Variable Costing

A costing method where variable manufacturing costs are treated as product costs, and fixed manufacturing overhead is treated as a period cost.

Net Income

The amount of earnings left after all expenses, including taxes and costs, have been subtracted from total revenue.

Fixed Overhead

Fixed overhead consists of the consistent, ongoing costs not directly tied to production levels within a business, such as rent, insurance, and salaries.

Inventory

Items held by a company for sale in the ordinary course of business or to be used in producing goods and services for sale.