If the Foreign Exchange Rate Is 70 Cents for One

question 249

Multiple Choice

If the foreign exchange rate is 70 cents for one Swiss franc, then

• A) a car that costs 40,000 francs will cost $7,143.00.
• B) a wine that costs 200 francs will cost $14.00.
• C) a clock that costs 500 francs will cost $350.00.
• D) a house that costs 100,000 francs will cost $700,000.00.

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Definitions:

Equivalent Unit

a concept used in cost accounting to represent a partial unit of production, allowing for the calculation of costs for partially completed products.

Process Costing

An accounting methodology used to allocate costs to units of product in continuous processes or industries where identical products are produced.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into finished products.

Equivalent Units

A concept used in cost accounting to express the amount of goods or services produced in terms of the number of complete units.