For the United States, a Consequence of Its Current Account

question 138

True/False

For the United States, a consequence of its current account deficit is a growing foreign ownership of the capital stock of the United States and a rising fraction of U.S.income that must be diverted abroad in the form of interest and dividends to foreigners.

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Definitions:

Overhead Allocation Base

A measure or criteria used to distribute indirect costs to various products, services, or departments based on their usage or consumption.

Direct Labor Hours

The total time workers spend producing a product or performing a specific service, directly contributing to the output.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied uniformly to all cost objects irrespective of the department incurring the overhead.

Unit of Product

This term refers to a single complete product that is ready for sale or has passed through one complete stage of production.