Table 23-8 A Country Produces Only Meat and Potatoes in the Quantities

question 239

Multiple Choice

Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year.
-Refer to Table 23-8. In 2012, GDP deflator is

• A)122.
• B)134.
• C)92.
• D)113.

---

Definitions:

Underapplied

A term often used in cost accounting to denote when the allocated overhead or indirect costs are less than the actual overhead incurred.

Raw Materials

Basic materials used in the production process that are transformed into finished goods.

Storeroom

A room or space where supplies, materials, or equipment are kept for future use.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned on the right side of an accounting ledger.