If the U.S. Dollar Depreciates, It Means That

question 92

Multiple Choice

If the U.S. dollar depreciates, it means that

• A) the value of the U.S. dollar has increased.
• B) the value of foreign exchange has decreased.
• C) fewer U.S. dollars are required to purchase foreign exchange.
• D) more U.S. dollars are required to purchase foreign exchange.
• E) exports will immediately fall.

---

Definitions:

Overapplied Manufacturing Overhead

Occurs when the manufacturing overhead allocated to products is more than the actual manufacturing overhead costs incurred.

Cost of Goods Sold

The immediate expenses related to the manufacturing of products a company sells, encompassing both materials and labor costs.

Job-Order Costing System

An accounting method used to assign costs to specific batches or orders of products.

Overhead Applied

The allocation of indirect costs to the different products or services produced, based on a predetermined rate.