When the Dollar Appreciates Relative to Foreign Currencies, It Means

question 242

Multiple Choice

When the dollar appreciates relative to foreign currencies, it means that

• A) we need more dollars to buy each unit of another currency.
• B) we can buy less foreign currency with a given amount of dollars.
• C) the value of foreign currencies decreased relative to our dollar.
• D) foreigners need less of their currency to buy one dollar.

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Definitions:

Predetermined Overhead Rate

A rate estimated before a period begins, used to allocate overhead costs to products or job orders based on a chosen activity base.

Allocation Base

A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.

Manufacturing Overhead Cost

All manufacturing costs that are not directly associated with the production of a product, including indirect materials, indirect labor, and other expenses.

Departmental Overhead Rates

Specific rates used to allocate overhead costs to products or cost objects based on the expenses of different departments.