Refer to the Information Provided in Table 33

question 57

Multiple Choice

Refer to the information provided in Table 33.2 below to answer the question(s) that follow.
Table 33.2
-Refer to Table 33.2. Which terms of trade benefits both countries?

• A) 1 tractor for 10 motorcycles
• B) 1 tractor for 12.5 motorcycles
• C) 1 motorcycle for 10 tractors
• D) 1 motorcycle for 1/5 of a tractor

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Definitions:

Direct Labor

Costs associated with the employees who are directly involved in the production of goods or services.

Indirect Labor

Labor costs associated with support work that does not directly contribute to the production of goods or provision of services but is necessary for operations.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services.

Indirect Materials

Materials used in the production process that are not directly traceable to the finished product, such as lubricants and cleaning supplies used in machinery.