Variances

question 84

Multiple Choice

Variances:

• A)Are only investigated if they are unfavorable
• B)Are always investigated
• C)Will always result in the improvement of the logistics function
• D)Understanding the cause of both favorable and unfavorable variances can be important

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Definitions:

Trade Surplus

A scenario where the value of goods a country sells abroad is higher than what it buys, reflecting a surplus in the trade balance.

Favorable Balance

A financial situation where the credits or revenues are greater than debits or expenses, leading to a net positive outcome.

Balance of Trade

The difference between a country's exports and imports of goods and services.

Exports

Goods or services sold by a country to buyers in other countries, contributing to the exporting nation’s economy.