The Capital Account Includes

question 81

Multiple Choice

The capital account includes

• A)the export and import of goods and services.
• B)all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses.
• C)all purchases and sales of international reserve assets such as dollars, foreign exchanges, gold, and special drawing rights (SDRs).
• D)none of the above

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Definitions:

Single-Base Allocation

A cost allocation method where overhead costs are distributed based on a single criterion or cost driver.

Cost Difference

The variance between the actual cost and the standard or expected cost of an item or activity.

ABC System

Activity-Based Costing System, a method of assigning overhead and indirect costs to specific products and services based on their consumption of resources.

Cost Pools

Groupings of individual costs based on their similarity or a shared function, used in activity-based costing to allocate costs more accurately.