According to Statement 52,"Foreign Currency Translation," the Functional Currency of an Integral

question 67

True/False

According to Statement 52,"Foreign Currency Translation," the functional currency of an integral subsidiary is to be the home currency.

---

Definitions:

Market Price

The current price at which a good or service can be bought or sold in a marketplace.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Downstream Division

Pertains to the part of a corporation involved in the refinement, processing, and sale of the end products derived from raw materials.

Transfer Price

The price at which divisions of a company transact with each other, often used for budgeting and tax purposes.