Which Statement About U

question 20

Multiple Choice

Which statement about U.S. - China relations is INCORRECT?

• A) The United States is China ' s largest trading partner.
• B) China is the United States' second-largest trading partner.
• C) The United States did not establish formal diplomatic relations with China until the late 1980s when it became clear that China was going to initiate reforms.
• D) Only about 3 percent of consumer spending by Americans is spent on goods and services from China.
• E) China owns over 1 trillion dollars of America's foreign debt.

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Definitions:

Fixed Costs

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.

Variable Costing

An accounting method in which costs that vary directly with production volume (such as materials and labor) are included in product costs, whereas fixed costs are not.

Absorption Costing

A system of accounting that entails adding all expenses incurred in production, including direct materials, direct labor, and both variable and fixed overheads, into the cost calculation of a product.

Product Cost

The total cost of manufacturing or purchasing a product, including raw materials, labor, and overhead expenses.