Why Will Every Industrialized Nation in the World Face a Demographic

question 95

Multiple Choice

Why will every industrialized nation in the world face a demographic crisis in the near future?

• A)The social security systems in these countries will be bankrupt.
• B)The number of young adults will far outnumber the elderly.
• C)There will be fewer young and middle-aged workers to provide for the financial well-being of the elderly.
• D)The current generation is not adequately planning for retirement.

---

Definitions:

Variable Costing

An accounting method that includes only variable costs—costs that vary with production level—in the calculation of unit cost.

Net Incomes

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Variable Costing

A pricing strategy that incorporates solely the variable costs associated with production—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of goods sold, while omitting fixed overhead expenses.

Absorption Costing

A method of accounting that incorporates all costs associated with manufacturing, including direct materials, direct labor, as well as both variable and fixed overhead expenses, into the product's cost.