If the Exchange Rate Changes from 40 Thai Baht Per

question 136

Multiple Choice

If the exchange rate changes from 40 Thai baht per dollar to 35 Thai baht per dollar, what has happened to the dollar?

• A)It has appreciated and so buys more Thai goods.
• B)It has appreciated and so buys fewer Thai goods.
• C)It has depreciated and so buys more Thai goods.
• D)It has depreciated and so buys fewer Thai goods.

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Definitions:

Cost of Goods Sold

The immediate expenses related to manufacturing the products a company sells, comprising costs for materials and labor.

Job-Order Costing System

A costing method used to accumulate costs of production by job or batch, suitable for manufacturing processes producing unique products or jobs.

Overapplied

Refers to a situation where the manufacturing overhead allocated to products is more than the actual manufacturing overhead incurred.

Underapplied

Describes a situation in cost accounting when the allocated manufacturing overhead costs are less than the actual overhead incurred, leading to a discrepancy that needs adjustment.