If the USdollar Increases in Price in the Foreign Exchange Market the Market

question 22

Multiple Choice

If the U.S.dollar increases in price in the foreign exchange market the result is that

• A)it requires less of other currencies to buy U.S.dollars
• B)it requires more of other currencies to buy U.S.dollars
• C)it requires less U.S.dollars to buy other currencies
• D)it requires more U.S.dollars to buy other currencies.

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard (expected) cost, used to assess budgeting efficiency.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost at standard prices.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance and cost control.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.