Which of the Following Items Is Counted as Part of Government

question 102

Multiple Choice

Which of the following items is counted as part of government purchases?

• A)The federal government pays $2,000 in Social Security benefits to a retired person.
• B)The city of Athens,Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards.
• C)The state of Nebraska pays $1,000 to help a low-income family pay its medical bills.
• D)All of the above are correct.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly linked to the production of goods, including indirect materials, indirect labor, and other indirect expenses.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders.

Machine-Hours

The total time machines are operated within a certain period, often used to allocate manufacturing overhead.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, such as salaries of supervisors and the cost of factory utilities.