A Good That Would Be Counted as Consumption in GDP

question 35

Multiple Choice

A good that would be counted as consumption in GDP would be the:

• A) Subway sandwich Tony ate for lunch.
• B) $10 Tony received after winning a bet with his friend.
• C) $50 in wages Tony received that day from working all afternoon.
• D) common stock Tony purchased for his 401(k).

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Definitions:

Process Cost

A method of costing that is used to determine the cost of producing products in continuous processes or operations.

Job Order Cost

A cost accounting system that accumulates costs according to specific jobs or orders, tracking the expenses related to individual products or projects.

Job Order Cost Systems

An accounting system used to assign costs to specific customer orders or batches, tracking the direct materials, direct labor, and overhead costs incurred for each.

Unit Costs

Unit costs, also known as cost per unit, represent the total expense incurred to produce, store, and sell one unit of a product or service, including direct and indirect costs.