Which of the Following Is an Advantage of Fixing Exchange

question 254

Multiple Choice

Which of the following is an advantage of fixing exchange rates?

• A) limiting foreign exchange risk
• B) making residents more mobile across countries
• C) eliminating trade deficits
• D) making the prices of foreign goods more flexible in the domestic market

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Definitions:

Applied

The method of assigning or allocating overhead costs to specific products or jobs based on a predetermined rate.

Fixed Manufacturing Overhead

Costs incurred during the production process that do not vary with the level of production, such as rent for factory buildings, salaries of plant managers, and depreciation of manufacturing equipment.

Budget Variance

The variance between what was expected to be spent or earned, according to the budget, and the real amount that was spent or received.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a specific activity base, such as labor hours or machine hours.