If the Current Account Shows a Deficit, the Capital Account

question 89

True/False

If the current account shows a deficit, the capital account must show a surplus of the same amount.

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Definitions:

Direct Labour Cost

The total cost of all the labor force that is directly involved in the manufacturing of a product or the provision of a service.

Predetermined Overhead Rate

An estimated overhead rate calculated before the manufacturing process begins, used to assign overhead costs to products.

Direct Materials Cost

The expenditure on raw materials that can be directly attributed to the production of a specific product.

Direct Labour-Hours

The hours worked directly on the production of goods or services by employees.