Suppose You Are a U

question 22

Multiple Choice

Suppose you are a U.S. investor who is planning to invest $100,000 in China. Your Chinese investment gains 5%. If the exchange rate moves from 7.12 Yuan per dollar to 7.14 Yuan per dollar over the period, what is your total return on this investment?

• A)4.42%
• B)4.56%
• C)4.71%
• D)5.26%
• E)5.33%

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into producing them.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the manufacturing process.

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.

Activity-Based Costing

A methodology for costing that detects operations in a company and assigns the costs of these operations to all products and services in proportion to their true use.