Net Exports

question 89

Multiple Choice

Net exports

• A) are the second largest component of total spending
• B) are already included in measures on consumption,investment,and government spending
• C) are a source of total spending on U.S.output
• D) are always positive;i.e. ,total exports always exceed total imports
• E) are always positive;i.e. ,total imports always exceed total exports

Understand the concept of relevant costs for decision-making.

Identify and apply principles of cost behavior to business scenarios.

Analyze the impact of special orders on operating income.

Determine the minimum acceptable price for special orders and product pricing.

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Definitions:

Bargaining Position

The advantage or leverage that a party has in negotiations or discussions to influence an agreement's terms in their favor.

Cashier Check

A check drawn by a bank on its own funds and signed by a cashier, considered more reliable than a personal check because the bank guarantees its payment.

Commission Salesman

An individual who earns income based on the percentage of sales they generate.

Bargaining Position

The relative power of a party during negotiations that can influence the terms of the agreement.