Which of the following is NOT an indicator that a U.S. parent’s currency should be the functional currency?

Practice Quiz Question

Which of the following is NOT an indicator that a U.S. parent’s currency should be the functional currency?

a. Sales contracts denominated in U.S dollars.

b. Raw materials purchased from vendors in the U.S.

c. Sales contracts denominated in subsidiary’s currency.

d. Labor costs of factory workers in the U.S. producing inventory.