When There Is a Negative Entry for Unilateral Transfers in the Balance

question 144

Multiple Choice

When there is a negative entry for unilateral transfers in the balance of payments, it means that

• A)there must be an offsetting positive sign in the capital account.
• B)U.S. residents gave more to foreign residents than foreign residents gave to U.S. residents.
• C)U.S. residents purchased less services from foreign countries than foreign countries purchased from U.S. residents.
• D)U.S. residents purchased more services from foreign countries than foreign countries purchased from U.S. residents.

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Definitions:

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead cost that is assigned to each unit of production based on a predetermined rate.

Labor-Hour

A labor-hour represents an hour of work performed by an employee, typically used as a basis for allocating labor costs or measuring productivity.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and factory equipment depreciation.

Underapplied

A situation in cost accounting where the allocated or applied costs are less than the actual costs incurred.