Which of the Following Statements Is True

question 62

Multiple Choice

Which of the following statements is true?

• A)The effective exchange rate compares the value of the Canadian dollar in terms of the average value of the currencies of all countries with which Canada trades.
• B)The effective exchange rate compares the value of the Canadian dollar in terms of the average growth rates of all countries with which Canada trades.
• C)The effective exchange rate compares the value of the Canadian export prices in terms of the average export prices of all countries with which Canada trades.
• D)The effective exchange rate compares the value of the Canadian import prices in terms of the average import prices of all countries with which Canada trades.
• E)The effective exchange rate compares the value of the Canadian export and import prices in terms of the average export and import prices of all countries with which Canada trades.

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on a standard rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (budgeted) cost of these materials.

Standard Direct Labor-Hours

The estimated amount of labor time required to produce one unit of output, based on established standards.

Variable Overhead Rate Variance

The difference between the actual and the standard cost of variable overheads in a production process.