Consider the Following Data That Identifies Real Gross Domestic Product

question 157

Multiple Choice

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions:
-How many quarters did this economy spend in a recession?

• A) 8 quarters
• B) 4 quarters
• C) 2 quarters
• D) 6 quarters
• E) 7 quarters

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Definitions:

Variable Factory Overhead

Costs of manufacturing that fluctuate with the level of production output, such as utilities and raw materials.

Total Factory Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard overhead costs previously estimated for a production process.

Standard Costs

Pre-determined or estimated costs of manufacturing a product or providing a service, used as targets or benchmarks.

Variances

Differences between planned financial outcomes and the actual results, used for budgetary control and operational analysis.