Sometimes It Is Easier to Use Machines and Technology Than

question 22

Multiple Choice

Sometimes it is easier to use machines and technology than to use labour. Which term refers to this type of situation?

• A) product market
• B) substitution effect
• C) electronic commerce
• D) labour demand

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Definitions:

Opening Inventory

The value of the goods available for sale at the beginning of an accounting period.

Functional Currency

The currency of the primary economic environment in which an entity operates, usually determined by the currency that mainly influences sales prices for goods and services or the country whose competitive forces and regulations most affect the entity's performance.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company.

Economic Exposure

The risk that a company's cash flow, earnings, or future cash flows will be affected by changes in exchange rates.