If Exports Exceed Imports, Then the Nation Has a

question 111

Multiple Choice

If exports exceed imports, then the nation has a

• A) capital account surplus.
• B) trade surplus.
• C) trade deficit.
• D) current account surplus.

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Definitions:

Manufacturing Cost

The total cost involved in making a product, including direct materials, direct labor, and manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance of a manufacturing facility.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, based on estimated costs and activity levels.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a specific product, including indirect labor, maintenance, and utilities.