How Are the Time Charges Calculated

question 52

Multiple Choice

How are the time charges calculated?

• A) Hourly labour cost
• B) Hourly labour cost + annual overhead
• C) Hourly labour cost + [annual overhead (excluding material handling and storage) / annual labour hours] + hourly charge to cover profit margin
• D) Hourly labour cost + hourly charge to cover profit margin

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Definitions:

Statement Of Cash Flows

A report detailing the movements in cash and cash equivalents due to variations in the balance sheet positions and income, segmented by operations, investments, and financing actions.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment or investment securities.

Operating Activities

Activities that relate directly to the principal revenue-generating activities of a business, such as sales and service provision.

Indirect Method

A method used in cash flow statements to adjust net income for non-cash transactions and changes in working capital to arrive at operating cash flow.