The Following Information Is Taken from the Production Budget for the First

question 147

Multiple Choice

The following information is taken from the production budget for the first quarter: $$\begin{array} { l r } \text { Beginning inventory in units } & 1,200 \\\text { Sales budgeted for the quarter } & 426,000 \\\text { Capacity in units of production facility } & 472,000\end{array}$$ How many finished goods units should be produced during the quarter if the company desires 3200 units available to start the next quarter?

• A) 428000
• B) 424000
• C) 474000
• D) 429200

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Definitions:

Spot Trade

A financial transaction for immediate delivery of the traded asset.

Exchange Rate

The value of one currency for the purpose of conversion to another, facilitating international trade and finance by determining how much one currency is worth in terms of the other.

Forward Rate

An agreed upon rate for a financial transaction that will occur at a future date.

Canadian Dollar

The official currency of Canada, represented by the symbol $ or C$ to distinguish it from other dollar-denominated currencies.