If You Buy Shares, the Dollar Value Is

question 77

Multiple Choice

If you buy shares, the dollar value is:

• A)included in GDP under investment.
• B)not included in GDP.
• C)included in GDP under consumer expenditure.
• D)included in GDP as a business expense.

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Definitions:

Absorption Costing

An accounting technique that integrates all costs associated with production, including direct materials, direct labor, and variable and fixed overhead costs, into the cost of a product.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Loss

The negative result from operations or other transactions when costs and expenses exceed revenues.

Unit Product Cost

The total cost (including materials, labor, and overhead) to produce a single unit of product.