The Figure Given Below Represents the Saving Function of an Economy

question 83

Multiple Choice

The figure given below represents the saving function of an economy. Figure 9.1 Refer to Figure 9.1.Which of the following statements is true for real GDP levels below $400 billion?

• A)Saving exists because consumption is smaller than disposable income.
• B)Saving does not exist because consumption exceeds disposable income.
• C)The corresponding section of the consumption function lies below the 45-degree line.
• D)Autonomous consumption is equal to zero.
• E)The slope of the consumption function becomes negative.

Understand the accounting treatment for insignificant cost variances.

Understand the process and significance of recording labor costs in financial statements.

Calculate and interpret direct materials cost variances, including price and quantity variances.

Identify and record various types of variances in a standard cost system.