Examlex
The external financing requirements (EFR) of a firm are a function of:
Departmental Overhead Rate
The rate at which indirect costs are allocated to different departments within a company, often used for costing purposes.
Direct Labor Hours
The total number of hours worked by employees directly involved in manufacturing a product or providing a service, often used in calculating labor cost and efficiency.
Machine Hours
A measure of the amount of time a machine is operated, used in costing to allocate expenses based on how long a machine has been in use.
Setup Cost Per Unit
The cost associated with configuring or preparing equipment for manufacturing a batch of products, divided by the number of units produced.
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