In the Circular-Flow Diagram, a Household Is

question 49

Multiple Choice

In the circular-flow diagram, a household is:

• A)an entity that sells goods and services.
• B)an individual or group of people who share their income.
• C)an entity that purchases factors of production.
• D)a member of a group that is prohibited from buying imported goods and services.

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Definitions:

Process Costing

A costing method used for homogeneous products, dividing total costs by the number of units produced to calculate cost per unit.

Homogeneous

Characterized by uniformity or similarity in composition, nature, or character, often used in reference to materials or mixtures.

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Process Costing

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.