Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A) The forward rate is the same as the spot rate that will prevail in the future.
• B) The future spot rate is equal to the forward rate less the current spot rate.
• C) The actual spot rate that will prevail in the future is not known today.
• D) The future spot rate is the current spot rate increased by the inflation rate.

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Definitions:

Direct Labor Budget

A financial plan that estimates the cost of direct labor needed to meet production needs within a specific timeframe.

Direct Labor-Hour

A measure of the amount of time workers spend directly working on manufacturing a product or providing a service.

Labor Rate

The cost per hour that a company pays for labor, often used in calculating the total labor cost of a project or production.

Selling and Administrative Expense Budget

outlines predicted selling expenses and administrative costs for a future period.