Daylight Overdrafts Occur When

question 60

Multiple Choice

Daylight overdrafts occur when:

• A)FIs in different time zones clear transactions
• B)FI debits exceed credits during the day
• C)FI credits exceed debits during the day
• D)the sum of all debits transmitted over the system exceeds the sum of all credits during the day

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Definitions:

Direct Labor

Labor costs associated with employees who are directly involved in the production of goods or the provision of services.

Indirect Labor

Describes labor costs associated with employees who do not directly work on a product, but whose services are necessary for the manufacturing process.

Work in Process

Inventory items that are in the process of being transformed from raw materials into finished goods but are not yet complete.

Overapplied Manufacturing Overhead

A situation where the allocated amount for manufacturing overhead costs exceeds the actual amount incurred.