Table 201 -Refer to Table 20

question 139

Multiple Choice

Table 20.1
$\begin{array}{|l|c|}\hline \text { Current Account } & \text { (\$) } \\\hline \text { Merchandise exports } & +1000 \\\hline \text { Merchandise imports } & +3000 \\\hline \text { Merchandise trade balance } & \\\hline \text { Service exports } & +1500 \\\hline \text { Service imports } & +1000 \\\hline \text { Goods and services balance } & \\\hline \text { Net investment income from abroad }&100\\\hline \text { Net unil ateral transfers } &- 1,000 \\\hline \text { Current account balance } & \\\hline\end{array}$
-Refer to Table 20.1,which shows a balance-of-payments account.What is the current account balance?

• A)?$1,500
• B)?$2,000
• C)?$2,400
• D)?$2,420
• E)$500

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Definitions:

Operating Management

The administration of business practices aimed at ensuring maximum efficiency within an organization, focusing on converting materials and labor into goods and services as efficiently as possible.

Controlling Inventory Levels

A strategy used in operations management that aims at maintaining optimal levels of inventory to meet demand while minimizing carrying costs and stockouts.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period expenses.

Contribution Margin

The amount by which the selling price of an item exceeds its variable costs, contributing towards covering fixed costs and generating profit.