If the Purchase of Used Goods Was to Be Incorporated

question 33

Multiple Choice

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach,then

• A)we also will have to account for spending on financial assets.
• B)it will be very difficult to assign a fair market value to a used good.
• C)we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.
• D)we will have to account for the natural depreciation that a used good experiences.
• E)consumption spending would need to be adjusted for depreciation.

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Definitions:

Courses of Action

Refers to the different strategies or paths that can be taken to achieve a goal or solve a problem.

Controlling

A phase in the management process that consists of monitoring the operating results of implemented plans and comparing the actual results with the expected results.

Choosing Goals

The process of identifying desired outcomes or objectives to guide decision-making and actions.

Managerial Accounting

The practice of analyzing, interpreting, and providing information to management for planning, decision making, and operational control.