Foreign Selling Prices for Inventory Items -

question 20

Multiple Choice

Foreign selling prices for inventory items -

• A) are always set at a fixed price for the currency
• B) are always based on the home currency price and the exchange rate
• C) can be based on the exchange rate or fixed prices
• D) are not needed because inventory is not sold to customers outside of the country

---

Definitions:

APR

Annual Percentage Rate; the annual rate that is charged for borrowing, representing the actual yearly cost of funds over the term of a loan.

Compounded Weekly

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a weekly basis.

Deposit

Money placed into a financial institution for safekeeping or as a part of initiating a larger transaction.

APR

Annual Percentage Rate, which shows the cost of credit on a yearly basis expressed as a percentage.