The Budgeted Direct-Labour Cost Rate Includes ________ in the Calculation

question 277

Multiple Choice

The budgeted direct-labour cost rate includes ________ in the calculation.

• A)budgeted total direct-labour costs in the denominator
• B)budgeted total direct-labour costs in the numerator
• C)budgeted total direct-labour hours in the numerator
• D)budgeted total costs in the indirect cost pool

---

Definitions:

Average Rate

The average rate is a mean exchange rate over a specified period, used for accounting purposes to convert foreign currencies into the functional currency.

Foreign Exchange Gain

A profit resulting from changes in the exchange rate between the base currency and the foreign currency in which a transaction is denominated.

Exchange Loss

A financial loss that occurs when the value of a currency decreases relative to another currency in transactions involving foreign exchange.

Year End

The end of the financial year for a company, marking the close of the reporting period.