Which Trade Pattern Is BEST Explained by Increasing Returns

question 43

Multiple Choice

Which trade pattern is BEST explained by increasing returns?

• A) Honduras exports bananas to Canada,and Canada exports airplanes to Honduras.
• B) Pakistan exports clothing to Canada,and Canada exports airplanes to Pakistan.
• C) Japan exports cars to Canada,and Canada exports airplanes to Japan.
• D) Mexico exports beef to Canada,and Canada exports airplanes to Mexico.

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Definitions:

Activity Cost Pool

Refers to a grouping of all costs related to a specific activity used in activity-based costing to allocate overhead costs more accurately to products or services.

Activity-Based Costing

A method of costing that assigns costs to products or services based on the activities they require.

Activity Rate

The measure used to allocate costs to activities based on their use of resources.

Activity Cost Pool

A grouping of all the costs related to a particular activity, used in activity-based costing to more accurately allocate costs to products or services.