In What Way Is a Stronger Yen/weaker Dollar a Burden

question 56

Multiple Choice

In what way is a stronger yen/weaker dollar a burden for Japanese exporters?

• A)They received dollars when they sell goods but most of their costs of production are in yen.
• B)They receive yen when they sell goods but most of their costs of production are in dollars.
• C)The price of their exports will decline, resulting in lower profits.
• D)The stronger yen is likely to increase Japanese inflation, resulting in lower profits.

---

Definitions:

Cost Of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Retail Method

An inventory valuation method used in the retail industry to estimate the ending inventory value, based on the relationship between the cost of goods sold and the retail price.

Inventory Costing

Methods used to value a company’s inventory, such as FIFO, LIFO, or weighted average cost.

Financial Statements

Summaries that detail a corporation's financial state, featuring information like the balance sheet, income statement, and cash flow statement.