When Products Are Shipped Under a ______, the Exporter Is

question 37

Multiple Choice

When products are shipped under a ______, the exporter is paid once the shipment is made and the draft is presented to the importer for payment.

• A) consignment arrangement
• B) time draft
• C) prepayment arrangement
• D) sight draft

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Definitions:

Direct Labour-hours

The total time spent by workers who are directly involved in the manufacturing or assembly of a company’s products.

Cost of Goods Sold

The total cost directly attributed to the production of goods that were sold, including materials, labor, and overhead.

Overapplied Overhead

A situation where the overhead allocated to products or services is more than the actual overhead costs incurred.

Factory Equipment

The machinery and tools used in the manufacturing process of a product, typically considered a long-term asset.