Which of the Following Is Not a Major Factor That

question 169

Multiple Choice

Which of the following is not a major factor that encourages developing nations to form international commodity agreements?

• A) Inelastic commodity supply schedules
• B) Inelastic commodity demand schedules
• C) Export markets that tend to be unstable
• D) Secular increases in their terms of trade

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Definitions:

Conversion Costs

All manufacturing costs other than direct material costs.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Direct Materials Costs

Costs directly traceable to the production of a product, including raw materials and component parts.