Use the Information Below to Answer the Following Questions

question 119

Multiple Choice

Use the information below to answer the following questions.
Fact 7.3.1
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 7.3.1.With the removal of the tariffs,the quantity of Canadian imports from Mexico ________,and the quantity of Canadian exports to Mexico ________.

• A)increases;decreases
• B)decreases;decreases
• C)decreases;increases
• D)increases;does not change
• E)increases;increases

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units.

Equivalent Units

An approach utilized in process costing to translate partially finished units into an equivalent number of completely finished units.

First-in

A principle often related to inventory valuation where the earliest goods purchased or produced are the first ones to be sold or used.

Conversion

The process of changing resources into finished products, or converting prospects into customers.