If EUR/USD Is Quoted to You as 1

question 135

Multiple Choice

If EUR/USD is quoted to you as 1.3050-53, does this price represent?

• A) The number of EUR per USD
• B) The number of USD per EUR
• C) Depends on whether the price is being quoted in Europe or the US
• D) Depends on whether the price is being quoted interbank or to a customer

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead costs as period expenses.

Manufacturing Cost

This encompasses the total expenses related to producing goods, including costs for materials, labor, and overhead.

Absorption Costing

A costing technique encompassing all expenses tied to production, including direct materials, direct labor, along with variable and fixed overhead costs, as part of a product's cost.

Variable Costing

An accounting approach where only variable costs are included in the cost of goods sold and fixed overhead costs are treated as period expenses.