Which of the Following Is False

question 60

Multiple Choice

Which of the following is false?

• A)The competitive effect is that a depreciation may affect operating cash flow in the foreign currency by altering the firm's competitive position in the marketplace.
• B)The conversion effect is defined as a given operating cash flow in a foreign currency will be converted into a lower dollar amount after a currency depreciation.
• C)The competitive effect is defined as a given operating cash flow in a foreign currency will be converted into a lower dollar amount after a currency depreciation.
• D)none of the options

---

Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the production process.

Direct Labor-Hours

The total number of hours worked by employees who are directly involved in the manufacturing process.

Fixed Manufacturing Overhead

Costs in manufacturing that do not change with the level of production output, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Job-Order Costing System

A costing system that assigns costs to specific production jobs, useful for customized orders.