Current Trade Data Indicates That the Nation of Bogusland Exports

question 267

Multiple Choice

Current trade data indicates that the nation of Bogusland exports more to other nations than it imports. Bogusland has:

• A) an unfavorable balance of trade.
• B) a trade surplus.
• C) a trade deficit.
• D) a low balance of trade.

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Definitions:

Standard Cost System

An accounting method that assigns preset costs to products and services, which are then compared to actual costs incurred.

Predetermined Overhead Rate

A calculated rate designed to assign estimated indirect manufacturing costs to products or services, based on a planned activity level.

Fixed Component

A portion of total costs that does not change with the level of activity or production volume, such as rent or salaries.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the fixed overhead costs that were budgeted.