A Country That Has a Trade Surplus

question 26

Multiple Choice

A country that has a trade surplus:

• A) imports more than it exports.
• B) has a negative trade balance.
• C) sells more goods abroad than it buys from abroad.
• D) buys more goods at home that it buys abroad.

---

Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to mass-produced items that are not identical, allowing for the calculation of per-unit costs at various stages of production.

Conversion Cost

The total cost of converting raw materials into finished goods, comprising both direct labor costs and manufacturing overhead costs.

Total Conversion Cost

The sum of all labor costs and overhead expenses involved in converting raw materials into finished goods.

First-In, First-Out

An inventory valuation method where goods purchased or produced first are sold or used first.