Velocity Is the Average Number of Times a Dollar Is

question 81

Multiple Choice

Velocity is the average number of times a dollar is spent to buy

• A) final goods and services in a year.
• B) final and intermediate goods and services in a year.
• C) final goods,but not services,in a year.
• D) services in a year.

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Definitions:

Budgeted Activity Rate

The estimated rate or cost of business activities based on the budget for a specific period, often used for forecasting and planning purposes.

Reciprocal Services Method

A method of allocating service department costs to producing departments by considering the interdepartmental exchanges of services.

Support Department Costs

The costs associated with functions that assist the direct production or service departments of an organization, such as maintenance and administration.

Overhead Rates

The ratio used to allocate indirect costs to products or services, typically based on a measure such as labor hours or machine hours.