If a US Investor in a German Company Traded Only in Germany

question 4

Multiple Choice

If a U.S. investor in a German company traded only in Germany earned an annual return of 15% on the stock and 8% on the mark's exchange rate, his actual total return is

• A) 21.8%.
• B) 9.8%.
• C) 24.2%.
• D) 16.2%.

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Definitions:

Variable Manufacturing Overhead

Variable manufacturing overhead consists of production costs that fluctuate with the level of output, such as utilities and materials used in the production process.

Variable Overhead Rate Variance

The difference between the actual variable overhead rate incurred during a period and the standard variable overhead rate, multiplied by the actual activity level.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated based on the actual levels of the allocation base.

Lubricants

Substances applied to reduce friction and wear between surfaces in mutual contact, often used in machinery and equipment to ensure smoother operation.