In 2014,global Revenue for IBM Was $2 Billion Lower When

question 29

Multiple Choice

In 2014,global revenue for IBM was $2 billion lower when measured in dollars than when measured in local currencies.The reason for this discrepancy is the value of the

• A)euro decreased relative to the British pound.
• B)British pound increased relative to the U.S.dollar.
• C)U.S.dollar increased relative to most other currencies.
• D)U.S.dollar decreased relative to the Japanese yen.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Direct Labor Costs

Expenses associated with the wages and benefits of employees who directly work on the production of goods.

Cash Account

An account that tracks the amount of cash available to a business or individual.

Raw Materials Inventory

The total cost of all the materials kept in stock that have not yet been used in manufacturing.