Consider the Demand for and the Supply of the U

question 113

Multiple Choice

Consider the demand for and the supply of the U.S. dollar. The exchange rate is measured in terms of yen per dollar. If the demand for the U.S. dollar decreases, all of the following will be true EXCEPT that:

• A)the demand curve for dollars will shift to the left.
• B)the Japanese will buy more U.S. goods.
• C)Americans will buy more Japanese goods.
• D)the exchange rate of yen per U.S. dollar will fall.

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Definitions:

Machine-Hours

An indicator of the amount of work produced or activity level, determined by how many hours equipment is running.

Plantwide Predetermined Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base for the entire factory, often used in simpler costing systems.

Job-Order Costing System

An accounting system that assigns costs to specific jobs or batches of goods, typically used in manufacturing or service industries where each job is unique.

Direct Labor-Hours

A measurement of the time workers spend directly manufacturing a product, often used to allocate manufacturing overhead.