Which of the Following Is Not a Result of the Flexible

question 2

Multiple Choice

Which of the following is not a result of the flexible exchange rate system put in place in the early 1970s?

• A)Relative changes in domestic and foreign income growth rates affect exchange rates.
• B)Relative changes in interest rates affect exchange rates.
• C)Changing market conditions and market expectations affect exchange rates.
• D)Greater dependence on the monetary policies of other countries has now slowed international trade.

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Definitions:

Absorption Costing

Absorption costing is an inventory valuation method that incorporates all costs associated with manufacturing, including direct materials, direct labor, and all manufacturing overhead expenses, both variable and fixed, into the product cost.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product cost.

Management

The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of production, excluding fixed overhead.