The Demand for Plumbers Is the Same in Country a and Country

question 213

Multiple Choice

The demand for plumbers is the same in country A and country B, but the plumbers in country A earn less than the plumbers in country B. What can explain this difference?

• A) The economy of country A is more productive than the economy of country B.
• B) The economy of country B is more productive than the economy of country A.
• C) The supply of plumbers is greater in country A than country B.
• D) The supply of plumbers is greater in country B than country A.

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Definitions:

Flow Of Costs

Flow of Costs refers to the manner in which costs move through a company's accounts, typically beginning as inventory and transitioning through to the cost of goods sold.

Allocating And Assigning

The process of charging costs to cost objects or determining how costs should be divided and assigned to specific segments of a business.

Accumulating And Assigning

The process of gathering cost data and allocating it to specific products, services, or departments.

Raw Materials Inventory

The total cost of all the materials that are used in making a product but have not yet been converted into the finished product.