Answer: pegged exchange rate
Explanation:
A pegged exchange rate also referred to as the fixed exchange rate, sometimes is an exchange rate regime type whereby the value of a currency is fixed by the monetary authority of a particular country against the value of the currency of another country.
This is the type of exchange rate used by the Chinese government in the question above.
Answer:
a. $ 90,000 cost decrease
Explanation:
The computation in the change in the amount of differential cost is shown below:
= (Unit cost by ignoring the fixed cost) - (unit cost to manufacturing the purchase cost) × number of units purchased
= ($12 - $15) × 30,000 units
= $3 × 30,000 units
= $90,000 decrease
And the other information which is given in the question is not relevant. Hence, ignored it
Answer:
D. Using accrual of operating expenses and future adjustments
Explanation:
A common method used to smooth net income over time is using accrual of operating expenses and future adjustments
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