Any Item for Which a Separate Measurement of Cost Is

question 22

Multiple Choice

Any item for which a separate measurement of cost is desired is known as:

• A)cost allocation
• B)a cost object
• C)a direct cost
• D)an indirect cost

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Definitions:

Open Market Purchases

Transactions where a central bank buys government securities from the market to increase the money supply and stimulate economic activity.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, central banks, or other governing bodies.

Recession

An interval of short-term economic slump, where commercial activities and industrial operations decline, often determined by a fall in GDP for two back-to-back quarters.

Federal Reserve Bank

The central banking system of the United States, which regulates the U.S. monetary and financial system.