Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)Final goods and services produced abroad by Canadians are part of Canadian GDP.
• B)Final goods and services produced in Canada by foreigners are part of the foreign country's GDP.
• C)Final goods and services produced in Canada by foreigners are part of Canada's GDP.
• D)Final goods and services produced in Canada by foreigners are imports.
• E)Final goods and services produced in Canada by foreigners are exports.

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Definitions:

Factory Overhead Cost Budget

Budget that estimates the cost for each item of factory overhead needed to support budgeted production.

Total Variable Cost

The sum of all costs that vary directly with the level of production or sales volume.

Total Fixed Costs

The combined sum of all costs that do not change with the level of production or sales over a certain period.

Purchase Price Variances

The difference between the actual cost of purchased materials and the expected (or standard) cost, which can indicate efficiency or market condition changes.