As a Result of Slow Economic Growth Following the Recession

question 244

Multiple Choice

As a result of slow economic growth following the recession of 2007-2009,many companies including Cisco Systems,Lockheed Martin,and Cracker Barrel Old Country Store cut production and employment as a result of the sluggish growth in the total amount of spending in the economy.The total amount of spending in the economy is known as

• A)deficit spending.
• B)planned investment spending.
• C)aggregate expenditure.
• D)equilibrium spending.

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Definitions:

Raw Materials

The basic materials from which a product is made, used in the early stages of the production process.

Work in Process

Inventory that includes materials that have been partially completed, but not yet ready for sale.

Indirect Materials

These are materials used in the production process that cannot be directly linked to a specific product, such as lubricants for machines.

Overapplied

Refers to the condition where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead cost.