Which of the Following Is True for the Term "Spot

question 49

Multiple Choice

Which of the following is true for the term "spot exchange rate"?

• A)It refers to the technique of protecting against the potential losses that result from adverse changes in exchange rates.
• B)It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
• C)It refers to the exchange rates that require immediate settlement with delivery of the traded currency.
• D)It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
• E)It refers to the exchange rate between two currencies, neither of which is the official currency in the country in which the quote is provided.

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process or production of goods.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Manufacturing Overhead Account

An account that accumulates all indirect costs associated with the production process, excluding direct materials and direct labor costs.