Which of the Following Is/are NOT Included in the Expenditure

question 55

Multiple Choice

Which of the following is/are NOT included in the expenditure approach to national income accounting?

• A) software
• B) taxes
• C) defense expenditures
• D) All of these answers are correct.
• E) None of these answers is correct.

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Definitions:

Direct Labor Rate

The cost per hour for direct labor, which includes wages of workers who are directly involved in the production of goods.

Efficiency Variances

Represents the difference between the actual input costs and the standard input costs anticipated for the production achieved.

Sales Price Variances

The difference between the actual price at which goods or services are sold and the expected (standard) sale price.

Sales Volume Variances

This is the difference between the actual sales volume and the budgeted sales volume, affecting revenue and expense projections.