Which of the Following Items Is Counted as Part of Government

question 102

Multiple Choice

Which of the following items is counted as part of government purchases?

• A)The federal government pays $2,000 in Social Security benefits to a retired person.
• B)The city of Athens,Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards.
• C)The state of Nebraska pays $1,000 to help a low-income family pay its medical bills.
• D)All of the above are correct.

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Definitions:

Conversion Costs

The sum of labor and overhead costs incurred to convert raw materials into finished goods.

Equivalent Units of Production

A concept in cost accounting to standardize the amount of work done by various classes of inventory, facilitating comparisons and calculations.

Conversion Costs

The total expenses of direct labor combined with manufacturing overheads used in transforming raw materials into finished goods.

FIFO Method

An inventory valuation method that assumes goods purchased first are the first sold, standing for "First-In, First-Out."