A Country Has a Trade Surplus When

question 160

Multiple Choice

A country has a trade surplus when

• A) its exports exceed its imports.
• B) its exports equal its imports.
• C) its government spending exceeds its tax revenues.
• D) its exports are less than its imports.

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Definitions:

Direct Materials

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

Manufacturing Cost Variance

The difference between the actual costs of production and the standard or expected costs, indicating efficiency or inefficiency in the manufacturing process.

Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost expected to be used.

Direct Labor Cost Variance

The difference between the budgeted cost of direct labor and the actual cost incurred.