The Calculation of GDP Excludes the Value of

question 139

Multiple Choice

The calculation of GDP excludes the value of

• A)government expenditure on office supplies.
• B)households' purchases of shampoo.
• C)businesses' purchase of new machine tools.
• D)a family member painting the family home.
• E)expenditure on durable goods.

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Definitions:

Job Order Cost Accounting

A method of accounting that accumulates costs for each job or project separately, often used in manufacturing or service industries.

Direct Labor Costs

Expenses associated with employees who directly contribute to the manufacturing or production of goods.

Work in Process

Partially finished goods that are in production but have not yet been completed at a specific point in time.

Cost Ledger

A subsidiary ledger that contains individual accounts for each type of cost, including materials, labor, and overhead, used in process costing systems.