The Purchase of a Share of Stock Is Excluded in the Calculation

question 13

Multiple Choice

The purchase of a share of stock is excluded in the calculation of GDP because it

• A)is an intermediate good.
• B)produces value added.
• C)only represents the transfer of ownership rights.
• D)is a final service and not a good.

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Definitions:

Product Cost

The total expenses incurred to bring a product to market including materials, labor, and overhead costs.

Job Order Cost Sheets

Detailed records that track the costs associated with specific jobs or orders, including materials, labor, and overhead.

Subsidiary Ledger

A group of accounts with a common characteristic.

Job Cost Sheets

Documents or records that detail the materials, labor, and overhead costs associated with a particular job or project.