Which of the Following Falls on the Plus Side of the U.S

question 31

Multiple Choice

Which of the following falls on the plus side of the U.S. balance of payments?

• A) payments to the United States for insurance
• B) the costs of goods imported
• C) spending by American tourists overseas
• D) new overseas investments
• E) the cost of foreign military

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of output produced.

Fixed Costs

Overheads that are unaffected by the quantity of output or sales, for example, tenancy costs, wages for staff, and indemnity expenses.

Contribution Format

A type of income statement presentation that separates fixed and variable costs, allowing for an easier assessment of how changes in volume affect profitability.

Contribution Format

A way of presenting income statements where variable costs are deducted from sales to find the contribution margin, then fixed costs are deducted to find net operating income.