Which of the Following Best Describes an Intermediate Good

question 101

Multiple Choice

Which of the following best describes an intermediate good?

• A)It has no value to the seller.
• B)It has no value to the buyer.
• C)It is purchased by a household for future use.
• D)It helps produce another good.
• E)It is sold at a discounted price by middlemen.

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Definitions:

Standard Rate

A predetermined cost or price that is established for accounting or budgeting purposes, often used in costing and financial analysis.

Actual Hours

The real number of hours worked, as opposed to planned or estimated hours.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that should have been incurred, based on controllable factors.

Budgeted Overhead

The estimated cost of all indirect production expenses for a specific period as part of the budgeting process.