According to AASB 121 the Effects of Changes in Foreign

Multiple Choice

According to AASB 121 The Effects of Changes in Foreign Exchange Rates,the key economic factor to consider in determining an entity's functional currency is:

A) which economic environment has the higher exchange rate.
B) in which economic environment does the company incur the highest proportion of its production costs.
C) which economic environment an entity primarily generates and spends cash.
D) none of the above.