BSGQ2 - Based on information on the Help Screen for the...

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Based on information on the Help Screen for the Plant Operations Report (see the Plant Investment section), if a company adds new plant capacity at a cost of $45 million, then its annual depreciation costs will rise by $1,800,000. $2,250,000. $180,000. $225,000. None of these. As is explained on both the Help screens for the Branded Sales Report and the Private-Label Sales Report, when exchange rate shifts result in a stronger US$ and a weaker Brazilian real, then the reals collected on footwear sales in Latin America, when converted into US$, result in foreign exchange gains that have the effect of enhancing company revenues and profits. foreign exchange losses that have the effect of reducing company revenues and profits. foreign exchange losses that have the effect of enhancing company revenues and profits. foreign exchange gains that have the effect of reducing company revenues and profits. None of the above is accurate. Given the following exchange rate changes: Year 1 Year 2 Euros (€) per US$ 0.8230 0.8165 Sing$ per Brazilian real 0.5860 0.5710 Brazilian real per euro (€) 3.7030 3.7180 US$ per Sing$ 0.5940 0.5980 Then, as explained on the Help screen for the Branded Sales Report, it follows that: The euro has grown weaker versus the US$. The Brazilian real has grown stronger against the Sing$. The Brazilian real has grown stronger versus the euro.
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The euro has grown stronger against the US$. The US$ has grown stronger versus the Sing$. Based on information on both the Help screens for the Plant Operations Report and the Private-Label Sales Report, which of the following statements regarding how plant costs are allocated between branded and private-label footwear is false? Annual plant supervision costs are allocated between branded production and private-label production according to their respective percentages of total pairs produced—thus, if 95% of the total pairs produced at a plant are branded then 95% of annual plant supervision costs are allocated to branded production. Total plant maintenance costs are allocated between branded production and private-label production according to their respective percentages of total pairs produced—thus, if 90% of the total pairs produced at a plant are branded then 90% of total plant maintenance costs are allocated to branded production. Annual depreciation costs are allocated between branded production and private- label production according to their respective percentages of total pairs produced— thus, if 85% of the total pairs produced at a plant are branded then 85% of annual depreciation costs are allocated to branded production. The total amount the company spends for compensation of production workers is allocated between branded production and private-label production according to their respective percentages of total pairs produced—thus, if 80% of the total pairs produced at a plant are branded then 80% of total compensation costs are allocated to branded production. The total amount the company spends for best practices training is allocated
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This note was uploaded on 07/15/2011 for the course MGMT 490 taught by Professor Kirwan during the Summer '11 term at CSU San Bernardino.

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BSGQ2 - Based on information on the Help Screen for the...

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