If There Is a Steady Rise in the Ratio of Export

question 22

Multiple Choice

If there is a steady rise in the ratio of export to import prices for a country, it implies that:

• A) the country is unable to fund its imports easily.
• B) there has been an improvement in the terms of trade.
• C) GDP growth has slowed down.
• D) there has been a steady decline in the command GDP.

---

Definitions:

Period Costs

Expenses that are not directly tied to the production process and are charged to expense in the period they are incurred, such as selling and administrative expenses.

Overapplied Overhead

A situation where the actual manufacturing overhead costs are less than the overhead allocated to products during a specific period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, estimated before the costs are actually incurred.

Actual Overhead

The real costs incurred for overhead in manufacturing or providing services, as opposed to budgeted or estimated overhead.