Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)In case of a liquidity crisis, depositors do not need to worry as the RBA will pay out any deficit balances.
• B)In case of a liquidity crisis, any available balances will be divided equally among depositors.
• C)In case of a liquidity crisis, any available balances will be divided proportionally to each depositor's investment.
• D)In case of a liquidity crisis, the 'first comes, first served' principle holds.

---

Definitions:

Direct Labor-Hour

A measure of the amount of time spent by direct labor workers on a specific job or task, often used to allocate labor costs in job-order costing.

Manufacturing Overhead Budget

A financial plan that estimates the indirect costs associated with manufacturing, including utilities, salaries, and maintenance.

Direct Labor-Hour

A measure of the labor directly involved in manufacturing or service provision, calculated in hours.

Variable Overhead Rate

A rate that fluctuates with changes in production levels or business activity, applied to allocate variable overhead costs to products or services.