If We Import More Than We Export from the Rest

question 464

Multiple Choice

If we import more than we export from the rest of the world we

• A) must borrow an equal amount from the rest of the world.
• B) can lend an equal amount to the rest of the world.
• C) are running a trade surplus.
• D) are helping to finance investment in the rest of the world.

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Definitions:

First-In, First-Out

An inventory valuation method where the first items placed in inventory are the first ones to be used or sold.

Conversion Equivalent Units

A metric used in cost accounting to quantify the amount of work done on partially finished goods, measured in full unit equivalents.

First-In, First-Out

A method of valuing inventory in which the first items bought or manufactured are the first ones to be sold or utilized.

Conversion Costs

The combined costs of direct labor and manufacturing overhead required to convert raw materials into finished products.