The Total Volume of Goods and Services Produced by a Country

question 16

Multiple Choice

The total volume of goods and services produced by a country each year, divided by the size of the population is called the .

• A) production index
• B) the net national product (NNP)
• C) per capita gross national income (per capita GNI)
• D) the consumer index

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Definitions:

Machine-Hours

An indicator of how much is produced or the level of activity in manufacturing, determined by the total hours that machinery is in use during the production process.

Job-Order Costing

A costing method used to calculate the production costs of individual units or batches of products, making it especially useful for customized orders in manufacturing or service industries.

Plantwide Overhead Rate

An overhead allocation rate applied uniformly to all products or services based on overall plant activity, ignoring individual departmental differences.

Direct Labor-Hours

Refers to the measurable amounts of work effort contributed directly by laborers on the manufacturing floor towards the production of goods.