Which of the Following Would Not Be Considered a Direct

question 41

Multiple Choice

Which of the following would not be considered a direct cost with respect to the service department of a new car dealership?

• A) Wages of repair technicians.
• B) Property taxes paid by the dealership.
• C) Repair parts consumed.
• D) Salary of the department manager.
• E) Depreciation on new equipment used to analyze engine problems.

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Definitions:

Deficits

Occurs when an entity, typically a government, spends more money than it receives in revenue over a specific period, resulting in a shortfall that needs to be financed.

Inflationary Gap

The difference between the actual level of output in an economy and the output level needed to achieve full employment without inflation.

Budget Surplus

A situation where income or revenues exceed expenditures over a specified period of time.

Aggregate Demand

Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and time period.