If One United States Dollar Could Be Exchanged for One

question 81

Multiple Choice

If one United States dollar could be exchanged for one Australian dollar in 1970,and one United States dollar can now be exchanged for 0.94 Australian dollars,which of the following is true?

• A) The United States dollar gained value against the Australian dollar.
• B) The Australian dollar lost value against the United States dollar.
• C) The Australian dollar gained value against the United States dollar.
• D) The United States dollar gained value against the Australian dollar; and the Australian dollar lost value against the United States dollar.

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Definitions:

Product Cost Method

An accounting method that determines the cost to produce a product by summing the costs of raw materials, direct labor, and allocated overhead.

Invested Assets

Assets that are purchased or acquired for the purpose of generating income, capital appreciation, or other benefits to the investor.

Desired Profit

The target amount of profit a company aims to achieve in a specific period, often used in pricing and production planning.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.