If a Nation Is Selling More Goods and Services to Foreigners

question 156

True/False

If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be selling assets abroad.

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Definitions:

Raw Materials

The basic material from which a product is made, typically used in the manufacturing or production process.

Indirect Cost

Expenses not directly linked to the production of goods or services, such as rent, utilities, and administrative salaries.

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, jobs, and parts of the organization such as departments or divisions.

traceability Of Costs

The ability to assign direct costs to specific cost objects and to allocate indirect costs accurately.