Why Did the Bretton Woods System Ultimately Break Down

question 16

Multiple Choice

Why did the Bretton Woods system ultimately break down?

• A)The refusal of OPEC countries to accept payment for oil in gold.
• B)The refusal of surplus countries to devalue as required by law.
• C)An inability to devalue the U.S.dollar despite chronic payments deficits.
• D)An inability to adequately measure balance of payments surpluses and deficits.

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Definitions:

Factory Overhead Applied

The allocation of estimated factory overhead costs to individual units of production.

Depreciation Expenses

The systematic allocation of the depreciable amount of an asset over its useful life to account for wear and tear, obsolescence, or decay.

Equivalent Units

A concept in cost accounting used to express the amount of work done by incomplete units in terms of fully completed units.

Average Cost Method

An inventory costing method that determines the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.