Which of the Following Statements Is Incorrect with Regard to the Importance

question 33

Multiple Choice

Which of the following statements is incorrect with regard to the importance of colonies for mercantilist nations?

• A) They served as sources of inexpensive raw materials.
• B) They served as markets for higher-priced finished goods.
• C) They served as a source of military protection.
• D) They served as a source of profits for mercantilist powers.

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Definitions:

Special Order Price

The price charged for a product or service that is outside the company's normal scope of work or products; often tailored pricing for a specific customer request.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculation, contrasting with absorption costing that also includes fixed costs.

Product Costs

Costs that are incurred to create a product that is intended for sale to customers. This includes direct materials, direct labor, and manufacturing overhead.

Direct Labor

Costs associated with employees who are directly involved in the production of goods or the provision of services, such as wages for factory workers.