The Balance of Payments Account Used to Record Payments for Imported

question 46

Multiple Choice

The balance of payments account used to record payments for imported goods and services is the

• A) capital account.
• B) current account.
• C) import account.
• D) exim account.

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Definitions:

Standard Cost

A predetermined cost for a product or service, based on expected material, labor, and overhead costs, used as a benchmark to control actual costs.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, reflecting changes in material prices.

Materials Quantity Variance

The gap between the actual and expected quantities of materials used in production, with each difference multiplied by the standard unit cost.

Raw Materials Purchase

The acquisition of basic materials needed for the production of goods, a critical input in the manufacturing process.