An Advantage of International Reserves Is That They Allow Countries

question 39

True/False

An advantage of international reserves is that they allow countries to sustain temporary balance-of-payments deficits until acceptable adjustment measures can operate to correct the disequilibrium.

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Definitions:

Direct Labour Hours

The total hours worked by employees directly involved in producing goods or delivering services, used to allocate labor costs accurately.

Standard Hours Allowed

The time that should have been taken to complete the period’s output. It is computed by multiplying the actual number of units produced by the standard hours per unit.

Labour Rate Variance

The difference between the actual cost of labour per hour and the standard cost that was expected, multiplied by the total hours worked.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard costs for the actual production achieved.