According to the New Keynesians

question 40

Multiple Choice

According to the new Keynesians:

• A)prices adjust to equate demand and supply in every market simultaneously.
• B)random variations in the money supply are the original source of economic fluctuations.
• C)unemployment is voluntary.
• D)aggregate supply shocks can be a prime source of economic instability.
• E)government policy cannot stabilize the economy.

Understand and identify different types of accounts and their roles in accounting.

Grasp the concept of the adjusting process and its importance in financial reporting.

Learn how to prepare adjusting entries for various financial situations.

Appreciate the rationale behind choosing a reporting period for companies.

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Definitions:

Activity-Based Costing

A technique for determining costs that discerns activities in an organization and charges the cost of these activities to all products and services, based on the real amount each consumes.

Unit Product Cost

The total cost incurred to produce a single unit of product, including direct materials, direct labor, and overhead.

Traditional Costing System

An accounting method that allocates overhead costs to products based on a predetermined rate, typically using a single overhead pool.

Direct Labor-Hours

The cumulative hours put in by workers who are directly engaged in the production process.