Transactions Involving Items Produced in the Past,such as the Sale

question 76

Multiple Choice

Transactions involving items produced in the past,such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale,are

• A)included in current GDP because GDP measures the value of all goods and services sold in the current year.
• B)included in current GDP but valued at their original prices.
• C)not included in current GDP because it is difficult to determine their value.
• D)not included in current GDP because GDP only measures the value of goods and services produced in the current year.

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Definitions:

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.

Responsibility Centers

Responsibility centers refer to distinct segments or areas within a company for which individual managers are accountable for revenue, costs, or investments.

Responsibility Center

An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.

Cost Center

A division or department within an organization that does not directly generate profits but incurs costs, often evaluated for efficiency.