Access International, a British Based Greeting Card Company, Is Interested

question 65

Multiple Choice

Access International, a British based greeting card company, is interested in importing paper from Canada.Which of these should Access arrange first for the Canadian company to ship the merchandise?

• A)Letter of credit
• B)Bill of Lading
• C)Time draft
• D)Sight draft
• E)Way bill

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Definitions:

Variable Overhead Rate

Variable overhead rate is the ratio of variable overhead costs incurred for every unit of activity or a specific measure of activity, such as labor hours.

Direct Labor-Hours

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

Variable Overhead Rate

A rate that changes with the level of activity or production volume, applied to variable overhead costs.

Lubricants Variance

A difference between the expected and actual cost of lubricants used in a manufacturing or operational process.