The USHas One of the Very Few Areas in the World

question 94

Multiple Choice

The U.S.has one of the very few areas in the world where kaolin can be mined.Kaolin is a necessary ingredient in many products ranging from stomach medication to paper.The U.S.-produced kaolin is sold all over the world.Kaolin is a(n) _____ for the countries that purchase it.

• A)embargo
• B)tariff
• C)import
• D)export
• E)countertrade

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Definitions:

Mature Production Process

Indicates a manufacturing or production process that has reached a stage of optimization and efficiency through experience and adaptation.

Standard Costing System

An accounting system that assigns fixed costs to products based on standard assumptions about the production process.

Variance Accounts

Accounts used in managerial accounting to record the differences between actual costs and standard (budgeted) costs.

Direct Material Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity used.