Upon Your Graduation from College,you Find That the Economy Is

question 41

Multiple Choice

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,you continue along your career path looking for a new job because

• A)the cost of additional education is always higher during recession.
• B)high unemployment rates do not usually last for very long.
• C)looking for work is your only option.
• D)the wages of college graduates do not fall during recession.

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Definitions:

Variable Costing

An accounting method that only allocates variable costs to products, excluding fixed overhead costs.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities of the business.

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product (including variable and fixed overhead costs) are considered product costs.

Net Operating Income

The profit generated from a company's normal business operations, excluding expenses such as taxes and interest charges.