Goods and Services That Are Used Up in the Production

question 65

Multiple Choice

Goods and services that are used up in the production of other goods and services are called _________ goods and services.

• A) intermediate
• B) final
• C) value added
• D) nominal
• E) real

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Definitions:

Raw Materials

The basic materials that are processed or used to manufacture goods.

Cash Disbursements

Outflows of cash for expenses, acquisitions, and other payments made by a business during a specific period.

November

The eleventh month of the year in the Gregorian calendar.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company; includes the cost of materials and labor directly used to create the product.