If the Pound-Dollar Exchange Rate Changes from £0

question 425

Multiple Choice

If the pound-dollar exchange rate changes from £0.60 per dollar to £0.65 per dollar, then the pound has _________against the dollar and the dollar has _________against the pound.

• A) depreciated; depreciated
• B) depreciated; appreciated
• C) appreciated; depreciated
• D) appreciated; appreciated

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Definitions:

Current Month

The current month refers to the ongoing month or the present period under consideration or review.

Weighted-Average Method

An inventory costing method that calculates cost of goods sold based on the weighted average cost of all items available for sale.

Equivalent Unit

An equivalent unit is a concept used in cost accounting to denote the amount of work done on units of production expressed in terms of fully completed units, facilitating the calculation of costs in a process costing environment.

Fabricating Department

A division within a manufacturing company where raw materials are assembled or processed into finished goods.