Which of the Following Statements Is NOT a Potential Problem

question 343

Multiple Choice

Which of the following statements is NOT a potential problem associated with cyclically balancing the federal budget?

• A) Different phases of the business cycle are not of equal length or severity.
• B) Forecasting the turning point of the economy is very difficult.
• C) Inflationary pressures can take hold,leading to the need later to enact extreme contractionary policy measures.
• D) Politicians find it difficult to cut spending.

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Definitions:

Overhead Costs

General business expenses not directly tied to producing a product or service, such as rent, utilities, and insurance.

Departmental Overhead Rate

A method for assigning overhead costs to products based on the specific department's expenses, facilitating more accurate product costing.

Production Volume

The total quantity of products or services produced within a specific period by a business.

Costing Accuracy

This refers to the preciseness and reliability of costing methods used to estimate or determine the actual costs of production, operations, or projects.