If Only One Currency Is Used for Evaluating Subsidiary Performance

question 25

Multiple Choice

If only one currency is used for evaluating subsidiary performance in a multinational corporation, what currency is it most likely to be?

• A) Euros
• B) Local currency of the subsidiary
• C) Currency of the parent company's home country
• D) None of the above

---

Definitions:

Work In Process Account

An account that tracks the costs associated with partially completed goods in manufacturing processes.

Process Cost System

An accounting method used to track the costs associated with processes that produce homogeneous products.

Process Cost System

An accounting methodology used to accumulate and assign costs to products or services that are indistinguishable from each other, typically used in manufacturing.

Work In Process Account

An account used to compile all costs (materials, labor, and overhead) related to partially completed goods.