In Comparing the Magnitudes of the Components of GDP According

question 198

Multiple Choice

In comparing the magnitudes of the components of GDP according to the expenditure approach,we see that in the United States

• A)government expenditure on goods and services is the largest category.
• B)investment is the largest category.
• C)investment is much larger than government expenditure on goods and services.
• D)investment is less than government expenditure on goods and services.
• E)investment,government expenditure on goods and services,and consumption expenditure are all about the same size.

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Definitions:

Plantwide Overhead Rate Method

A method of allocating manufacturing overhead costs to products based on a single, plant-wide rate, often using direct labor hours or machine hours as the allocation base.

Cost Objects

Any item for which a separate measurement of costs is desired; examples include a product, a service, a project, or a customer.

ABC

Can refer to Activity-Based Costing, a method of assigning costs to products or services based on the resources they consume.

Activities

In a business context, activities refer to the various tasks, operations or functions performed within the organization to achieve its objectives.