A Favorable Balance of Trade Occurs When the Value Of

question 148

Multiple Choice

A favorable balance of trade occurs when the value of:

• A)imports equal the value of exports.
• B)the cash inflows equal the value of the cash outflows.
• C)the value of imports is less than the value of exports.
• D)the value of the dollar is greater than the value of the Euro.

---

Definitions:

Cost Line

A graph representation showing the relationship between the cost incurred by a company and the level of activity or volume of production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate representation of product costs.

Direct Materials

Raw materials that are directly consumed in the manufacturing process of a product and are easily identifiable in the final product.

Unit Cost

The cost incurred to produce, store, and sell one unit of a product, calculated by dividing total costs by the number of units.