Which of the Following Is True

question 99

Multiple Choice

Which of the following is true?

• A) As the national debt increases relative to GDP,interest on the debt relative to GDP declines.
• B) As the national debt decreases relative to GDP,interest on the debt relative to GDP rises.
• C) As the national debt increases relative to GDP,interest on the debt relative to GDP rises.
• D) The national debt relative to GDP has been constant in recent years.
• E) The national debt relative to GDP has been falling in the last few years.

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Definitions:

Absorption Costing

A method in accounting that totals up all expenses of manufacturing including costs for direct materials, direct labor, along with variable and fixed overhead, assigning them to the cost of a product.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Unit Product Cost

The total cost (both fixed and variable) associated with producing a single unit of product.