Which of the Following Best Defines National Income

question 143

Multiple Choice

Which of the following best defines national income?

• A) all income produced within a country
• B) the total income earned by a nation's residents from the production of goods and services within the borders of the country
• C) the total income earned by a nation's residents in the production of goods and services
• D) the income received by the national government

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Definitions:

Job Order Cost

A method of cost accounting that gathers the costs of manufacturing a specific batch or job, including labor, material, and overhead.

Manufacturing Overhead Rate

The ratio of manufacturing overhead costs to the base activity, used to allocate overhead costs to produced goods.

Machine Hours

A measure of production output or operation, calculated as the total number of hours that machinery is in use.

Overapplied Overhead

A situation in managerial accounting where the allocated manufacturing overhead costs are more than the actual overhead incurred.