If the Treasury Uses a Relatively Large Proportion of ____

question 42

Multiple Choice

If the Treasury uses a relatively large proportion of ____ debt to finance the deficit, this may place upward pressure on ____ interest rates, and corporations may reduce their investment in fixed assets.

• A)long-term; long-term
• B)long-term; short-term
• C)short-term; long-term
• D)B and C

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Definitions:

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Unit Product Cost

Unit product cost is the total expense incurred to produce, assemble, and prepare a single unit for sale, encompassing both direct costs and allocated overheads.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing costs in the cost of a product, used for external reporting.

Unit Product Cost

The combined sum of fixed and variable expenses incurred in the creation of one unit of a product.