For MNCs,the Discrepancies in the Price of Currencies That Can

question 32

Multiple Choice

For MNCs,the discrepancies in the price of currencies that can occur on different markets:

• A)means that MNCs have to shop carefully when they need to buy foreign currency.
• B)allows MNCs to avoid losses arising out of currency transactions.
• C)relieves MNCs from having to plan currency transactions carefully.
• D)has allowed MNCs to become the largest speculators in currencies.

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Definitions:

Annual Overhead Costs

The total expenses related to the operation of a business that are not directly tied to a specific product or service, accumulated yearly.

Overhead Applied

An accounting method that allocates overhead costs based on a predetermined rate to individual products or job orders.

Direct Labor Cost

The total amount of money paid to employees for the work directly associated with the production of goods or services.

Overhead Cost

Indirect expenses related to the operation of a business, such as rent, utilities, and administration costs.