Capital Outflows Occur If

question 32

Multiple Choice

Capital outflows occur if:

• A)domestic interest rates are higher than foreign interest rates.
• B)domestic interest rates are lower than foreign interest rates.
• C)domestic and foreign interest rates are the same.
• D)none of the above.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and salaries of production managers, not directly attributable to a specific product.

Work in Process

Inventory that includes items that are in the process of being manufactured but are not yet completed.

Journal Entries

Records of financial transactions in the accounting system, in chronological order.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production costs.