China Has Developed a Comparative Advantage in the Production of Clothing.The

question 86

Multiple Choice

China has developed a comparative advantage in the production of clothing.The source of this comparative advantage is

• A)a large supply of natural resources.
• B)a large supply of unskilled workers and relatively little capital.
• C)investment in capital used to produce clothing.
• D)superior process technology.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

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.