You are US company, 300,000 BP (British Pound) payable to UK in one year. Answer in terms of US$.Information for Forward Contract:Forward exchange rate (one yr): 1.52 $/BPInformation for Money Market Instruments (MMI):Current exchange rate: 1.49 $/BPInvestment return at Aerion Fund Management (in UK): 7% annualInterest rate of borrowing from Bank of America (in USA): 2% annualInformation you need for Currency Options Contract:Options premium: 0.015 $/BPInterest rate of borrowing from Bank of America (USA): 2% annualAllowed to exercise options at 1.54 $/BP What are the costs of MMI? (Answer in US$ of course. You are US company!)

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?