If the Value of the Taiwan Dollar Increases Relative to Other

question 52

Multiple Choice

If the value of the Taiwan dollar increases relative to other currencies, which of the following would you expect?

• A) Canadian imports of Taiwanese goods will decrease.
• B) Taiwan imports will decrease.
• C) Taiwan exports will increase.
• D) Taiwan imports will increase.

---

Definitions:

Direct Materials

Parts and raw materials of a product.

Variable Overhead

Costs that fluctuate with production levels, such as utilities or materials used in the manufacturing process.

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.