Which One of Following Is Not a Reason to Take

question 102

Multiple Choice

Which one of following is not a reason to take into account the relevant range when estimating a cost?

• A) The cost function is nearly linear within a relevant range
• B) It is reasonable to assume that fixed costs remain fixed in this range
• C) It is reasonable to assume that variable costs remain constant in this range
• D) We cannot make assumptions about linearity within a relevant range

Distinguish between different hedging strategies: fair value hedges, cash flow hedges, and speculative transactions.

Record and adjust foreign currency transactions and hedges according to IFRS 9.

Analyze the effect of foreign exchange rate changes on forward contracts, receivables, payables, and loans.

Prepare journal entries and balance sheet presentations for foreign currency transactions and hedges.

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Definitions:

Earmarks

Funds that are directed to specific projects, beneficiaries, or locations, often within larger spending bills, typically by legislative provisions.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests, often regardless of merit.

Marginal Benefit

The additional satisfaction or value gained from consuming or producing one more unit of a good or service.

Tax Cost

The financial charges associated with taxation, including the actual tax payment as well as any related compliance or administrative expenses.