If Consumption Expenditures Are $500 Million, Spending on Fixed Investment

question 240

Multiple Choice

If consumption expenditures are $500 million, spending on fixed investment is $100 million, the increase in inventories equals $5 million, imports are $50 million, exports are $55 million, government spending on goods and services is $200 million, than GDP is

• A) $790 million.
• B) $800 million.
• C) $810 million.
• D) $830 million.

---

Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the resources consumed by the activities undertaken to produce them.

Supporting Assembly

A sub-process or department in manufacturing that assists in putting together the final product but does not directly add to the product itself.

Overhead Cost

Indirect costs of production or service delivery, such as utilities, rent, and administrative expenses.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce them, aiming to provide more accurate cost information.