Use the Information Below to Answer the Following Questions

question 51

Multiple Choice

Use the information below to answer the following questions.
Fact 31.3.1
Before 1995, trade between Canada and Mexico was subject to tariffs. In 1995, Mexico joined NAFTA and all Canadian and Mexican tariffs have gradually been removed.
-Refer to Fact 31.3.1. The quantity of Canadian exports to Mexico has ________ and the Canadian government's tariff revenue from trade with Mexico has ________.

• A)not changed; not changed
• B)decreased; increased
• C)increased; increased
• D)increased; decreased
• E)increased; not changed

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold based on the average cost of all goods available for sale during the period.

Conversion Costs

Combined costs of direct labor and manufacturing overhead, representing the costs to convert raw materials into finished goods.

Weighted-Average Method

An inventory costing method that takes the average cost of all goods available for sale during the period, weighted by the quantities purchased at different times.

Cost Reconciliation Report

A document that compares and explains the differences between expected costs and actual costs.