After Calculating Net Domestic Product at Factor Cost,to Calculate GDP

question 121

Multiple Choice

After calculating net domestic product at factor cost,to calculate GDP using the income approach,in part we must add

• A)wages.
• B)net operating surplus.
• C)indirect taxes and depreciation.
• D)interest,rent,and profit.
• E)subsidies.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing services.

Manufacturing Overhead

All indirect costs associated with the production process, such as maintenance, utilities, and quality control costs.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including material and labor costs.

Underapplied Overhead

A condition where the applied manufacturing overhead is less than the actual manufacturing overhead.