Suppose the Government Borrows to Purchase Military Ammunition Which Is

question 30

Multiple Choice

Suppose the government borrows to purchase military ammunition which is immediately used up in target practice.The rate of return on this investment is ________,and in this case the government debt ________ a burden on future taxpayers.

• A)r,is not
• B)r,is
• C)0,is not
• D)-r,is not
• E)-r,is

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Definitions:

Time-Driven

A method or system that calculates costs based on the time resources are used.

Activity-Based Costing

A cost distribution method that identifies operations within an entity and allocates the cost of these operations to each product and service according to their actual utilization.

Matching Capacity

Matching capacity involves adjusting a company's production capacity to meet forecasted demand, ensuring efficient use of resources.

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services by identifying cost drivers.