When Determining the Functional Currency

Multiple Choice

When determining the functional currency,

A) if the sales prices for the foreign entity's products are generally not responsive on a short-term basis to exchange rate changes, but are determined more by local competition and government regulation, the local currency should be the functional currency.
B) if there is an active local market for the foreign entity's products the local currency should be the functional currency.
C) if factor of production costs for the foreign entity are primarily, and on a continuing basis, costs for components obtained from the parent's country the function currency should be the home currency.
D) all of the above