Which of the following is a function of the foreign exchange Market?
A. To provide some insurance against foreign exchange risk
B. To protect short-term cash flow from adverse changes in exchange rates
C. To eliminate volatile changes in exchange rates
D. To reduce the economic exposure of a firm
E. To enable companies to engage in capital flight when countertrade is not possible
Answer: A. To provide some insurance against foreign exchange risk
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With the straight-line method of bond amortization, interest expense is the same amount every period
Indicate whether the statement is true or false
The following explains contribution margin ________.
A. sales minus fixed cost B. fixed cost minus variable cost C. sales minus variable cost minus fixed cost D. sales minus variable cost
Yuncen Foods, a company that manufactures frozen food, gets over half of its revenue from international sales. It has been consistently ranked the best frozen foods manufacturer in the world
It has catered its products to suit people in different countries according to their tastes and preferences. This shows that Yuncen Foods: a. needs to increase its domestic sales. b. has used inshoring to increase its profits and market share. c. should invest in another product line to compete effectively in the market. d. has a global vision that is paying off well.
Sturdivant Fasteners, Co. uses a traditional allocation of overhead based on direct labor hours. The manager has accumulated the following information on engineering changes, which are indirect cost of their products, for two of the company's major products: ?AutomotiveFastenersComputerFastenersTotal units produced5,0002,500Cost per engineering change$400$ 400Number of engineering changes525Direct labor hours per unit44Compute the cost per unit using: The traditional two-stage allocation of the costs of engineering changes based on direct labor hours.
What will be an ideal response?