Textile Industry in a Nation Is Characterized by Vigorous Domestic

question 103

Multiple Choice

Textile industry in a nation is characterized by vigorous domestic rivalry. Which of the following observations of this nation's international competency is most likely to be true?

• A) The nation will have access to such basic factors of textile industry as natural resources.
• B) The nation's textile firms will have a competitive advantage in international trade.
• C) The domestic customers of the textile firms will be less demanding.
• D) The nation's textile industry will lack the advanced factors that are necessary to be internationally competent.

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Definitions:

Variable Overhead Efficiency Variance

Variable Overhead Efficiency Variance is the difference between the standard cost of variable overheads for the actual production and the actual variable overheads incurred, often attributed to efficiency in utilizing variable resources.

Variable Overhead

Indirect production costs that change in response to the level of production activity, such as utility costs in a manufacturing plant that vary with machine usage.

Rate Variances

The difference between the expected (standard) cost and the actual cost incurred for a rate-based expense, such as labor or materials.

Lubricants

Substances applied to surfaces to reduce friction, protect against wear, or provide lubrication, often essential in machinery and manufacturing processes.