What Is the Practice of Switching Production to Products That

question 29

Multiple Choice

What is the practice of switching production to products that absorb the highest amount of fixed manufacturing costs called?

• A)cost reduction
• B)throughput costing
• C)producing for sales
• D)cherry picking

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Definitions:

Translated

Converted from one language to another or, in financial terms, adjusted from one currency into another using the current exchange rate.

Remeasured

The process of adjusting the book value of a foreign subsidiary’s financial statements to reflect current exchange rates or the fair value of assets and liabilities.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates, typically the currency in which it principally generates and expends cash.