When an Indian Importing Firm Wants to Import U

question 99

Multiple Choice

When an Indian importing firm wants to import U.K.-made products, it must first secure permission and money from the Reserve Bank of India.This type of restriction is known as a

• A) currency devaluation.
• B) foreign-exchange control.
• C) negative foreign exchange.
• D) trade embargo.
• E) quota.

---

Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more accurate costing.

Overhead Rate

A calculation used to allocate overhead costs to produced goods or services, typically based on a specific activity base such as labor hours or machine hours.

Predetermined Overhead Rate

A rate calculated at the beginning of the period by dividing estimated total overhead costs by an estimated allocation base, used to apply overhead costs to products or services.

Unused Capacity

The portion of a company's production potential that is not being utilized to manufacture goods or provide services.