In Activity-Based Costing, Unit Product Costs Computed for External Financial

question 44

True/False

In activity-based costing, unit product costs computed for external financial reports include direct materials, direct labor, and manufacturing overhead costs.

---

Definitions:

Forward Contract

A customized financial agreement between two parties to buy or sell an asset at a specified price on a future date, often used for hedging risks.

Natural Hedge

A risk management technique where a business reduces its exposure to fluctuations, typically in currency or interest rates, through its normal operations.

Trade Accounts Receivables

Amounts owed to a business by its customers from the sale of goods or services on credit.

Danish Krones

The currency of Denmark, used as the primary means of exchange within the country.