To Get a More Accurate View of the Size of Countries

question 86

Multiple Choice

To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using ________ and then adjust for ________.

• A) the interest rate; the exchange rate
• B) the exchange rate; price level differences
• C) price level differences; the interest rate
• D) the exchange rate; fiscal policy
• E) fiscal policy; the exchange rate

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual amount of the allocation base used.

Supplies

Materials and items used in the daily operations of a business that do not directly become part of the final product.

Flexible Budget

A budget that modifies based on fluctuations in activity levels or volume.

Output

The quantity of goods or services produced in a given time period by a company, individual, or machine.