Subsidiary a of Mega Corporation Has Net Inflows in Australian

question 27

Multiple Choice

Subsidiary A of Mega Corporation has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000. The expected exchange rate of the Australian dollar is $.55. What is the net inflow or outflow as measured in U.S. dollars?

• A)$500,000 outflow.
• B)$500,000 inflow.
• C)$275,000 inflow.
• D)$275,000 outflow.

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Definitions:

Direct Material Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity used.

Costs Of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor, but excluding indirect expenses such as sales and distribution costs.

Standard Costs

Benchmark costs established for the purpose of assessing financial performance and identifying variances in production or operations.

Controlling Costs

The process of monitoring and managing expenses to ensure they do not exceed budgeted amounts.