If the Spot Exchange Rate Goes from 0

question 19

Multiple Choice

If the spot exchange rate goes from 0.80 euro per dollar to 0.60 euro per dollar,the dollar has ___________ against the euro by _________ percent.

• A) appreciated; 25.0
• B) appreciated; 33.3
• C) depreciated; -25.0
• D) depreciated; -33.3

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Definitions:

Activity-based Rates

A pricing approach where rates are determined based on the activities required to produce a product or deliver a service, allocating costs more accurately.

Prime Costs

The combined costs of direct materials and direct labor which are directly attributable to the production of goods.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities and resources used to produce them.

Specialized Electric Motors

Electric motors that are designed and manufactured for specific applications or to meet particular requirements, distinguishing them from standard or generic motors.