Which of the Following Is a Way to Compute GDP

question 92

Multiple Choice

Which of the following is a way to compute GDP?

• A)total income earned.
• B)total expenditures on final goods.
• C)add up the market values of all final goods and services.
• D)All of the above are correct.

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Definitions:

Cost Basis

The original value or purchase price of an asset or investment for tax purposes, adjusted for dividends, splits, and returns of capital.

Lower-of-Cost-or-Market

An accounting principle requiring inventory to be recorded at either its cost or its market value, whichever is lower.

FIFO

A method of inventory valuation where goods first purchased or produced are assumed to be sold or used first, standing for "First In, First Out".

LIFO

Last-In, First-Out (LIFO) is an inventory valuation method whereby the most recently produced or acquired items are sold, used, or disposed of first.