A Current Account Surplus Is Defined as

question 46

Multiple Choice

A current account surplus is defined as

• A) exports less imports.
• B) government spending plus net exports.
• C) net exports less net factor payments made domestically.
• D) net exports plus net factor payments from abroad.
• E) imports less exports.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the production process.

Fixed Component

A cost that does not change with the level of output or activity over a particular period of time.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs rather than actual costs.