-Refer to the Above Table

question 275

Multiple Choice

-Refer to the above table. Suppose the transactions in the table are added to a balance of payments account that is already in balance. What will have to take place to keep the balance of payments in balance?

• A)Nothing will have to be done as the accounts are in balance.
• B)Nothing will have to be done as the accounts are in equilibrium.
• C)The U.S. government will have to make official reserve transactions equal to $10,000.
• D)Foreign governments will have to make official reserve transactions equal to -$10,000.

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Definitions:

Standard Costing

A costing method that assigns average costs to each production unit, based on estimated direct materials, labor, and overhead costs.

Variable Overhead

This consists of expenses that vary with production output, including costs not directly tied to manufacturing but essential for operation.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours set for the production level achieved.

Incremental Cost Approach

A decision-making process focusing on the costs that change with the level of production or the introduction of a new process.