Some Organizations Offer Only Very Closely Related Products (Such as Campbell

question 73

Multiple Choice

Some organizations offer only very closely related products (such as Campbell Soup Company) while others have a wide range of products (such as General Electric) . The variance among the product mix is usually reflected in the number of different product lines. A company like GE with many divergent product lines has a:

• A) wide product mix.
• B) deep product mix.
• C) narrow product mix.
• D) shallow product mix.

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Definitions:

Translated

Converted from one language to another or, in financial terms, adjusted from one currency into another using the current exchange rate.

Remeasured

The process of adjusting the book value of a foreign subsidiary’s financial statements to reflect current exchange rates or the fair value of assets and liabilities.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates, typically the currency in which it principally generates and expends cash.