A Summary Statement of All the International Transactions of the Residents

question 11

Multiple Choice

A summary statement of all the international transactions of the residents of a nation with the rest of the world during a particular period of time is called:

• A)Balance of payments
• B)Net exports
• C)GNP
• D)GDP

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Manager Bonuses

Extra compensation awarded to managers based on performance criteria or company profitability.

Absorption Costing

An accounting method that includes all manufacturing costs – direct materials, direct labor, and both variable and fixed overhead – in the cost of a product.

Income

The financial gain received by an individual or a business, typically from employment, investments, or sales of goods and services.