Use the Following Information for Questions 62-64

question 15

Multiple Choice

Use the following information for questions 62-64.
A company had the following inventory activity during May:
-If the company uses a perpetual system and the FIFO cost formula, what is the gross margin for the month closest to?

• A) $12,100
• B) $16,200
• C) $16,300
• D) $17.100

---

Definitions:

Devaluation

A deliberate downward adjustment to the value of a country's currency relative to another currency, group of currencies, or standard.

Fixed Exchange Rate

A system where the value of a currency is pegged at a set value against another currency or a basket of currencies.

Floating Exchange Rate

A currency's value that is determined by the foreign exchange market depending on supply and demand relative to other currencies, rather than a fixed value set by a government.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to determine the adjustments needed to make the exchange rates of two currencies equal.