Researching the effect a 10% shift in the exchange rate would have on your raw materials imports is an example of
A) current ratio analysis.
B) break-even analysis.
C) just-in-time scheduling.
D) value chain management.
E) management by objectives.

Question

Quizplus · Accepted Answer

Researching the effect a 10% shift in the exchange rate would have on raw material imports is an example of break-even analysis, which involves determining the point at which revenues equal expenses. In this case, the shift in the exchange rate could impact the cost of importing raw materials, which would directly affect the break-even point. Current ratio analysis involves analyzing a company's ability to pay its short-term debts, just-in-time scheduling focuses on minimizing inventory costs and maximizing efficiency, value chain management involves optimizing each step in a company's supply chain, and management by objectives involves setting specific goals for employees and tracking their progress towards those goals. None of these concepts are directly related to analyzing the impact of a change in exchange rates on raw material imports.

Researching the Effect a 10% Shift in the Exchange Rate