Transactions Involving Items Produced in the Past,such as the Sale

question 76

Multiple Choice

Transactions involving items produced in the past,such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale,are

• A)included in current GDP because GDP measures the value of all goods and services sold in the current year.
• B)included in current GDP but valued at their original prices.
• C)not included in current GDP because it is difficult to determine their value.
• D)not included in current GDP because GDP only measures the value of goods and services produced in the current year.

Analyze the implications of rewarding managers based on division revenues versus division profits.

Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.

Evaluate the conditions under which a cost center might be a more appropriate organizational design choice than a profit center.

Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.

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Definitions:

Jeb Bush

An American politician and member of the Bush family who served as the Governor of Florida and was a candidate for the Republican presidential nomination.

2000 Presidential Election

A highly contested election in the United States, ultimately decided by the Supreme Court, resulting in George W. Bush winning the presidency over Al Gore.

Recount

The process of counting votes again in an election, often triggered by the initial results being extremely close or disputed.

United States Supreme Court

is the highest court in the United States, with ultimate appellate authority over all federal and state court cases involving matters of federal law.