What Amount Should Be Included as a Foreign Exchange Gain

question 7

Multiple Choice

What amount should be included as a foreign exchange gain or loss from the two transactions for 2019?

• A) $ 9,000 loss.
• B) $ 9,000 gain.
• C) $11,000 loss.
• D) $21,000 loss.
• E) $21,000 gain.

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Definitions:

Lead Time

The total time taken from the initiation to the completion of a production process, including the time required for ordering materials and manufacturing.

Review Interval

The predefined period between successive evaluations or assessments of a system, process, or performance.

Supply Reduction

A decrease in the amount of goods provided in the market, which can result from various factors, including production cuts or supply chain disruptions.

Safety Inventory

Safety inventory refers to a quantity of stock maintained to mitigate the risk of stockouts due to demand and supply variability.