An Exchange Rate Variance Results from ________

question 64

Multiple Choice

An exchange rate variance results from ________.

• A)setting the budget at the actual exchange rate at that time and final performance at the rate used when the budget was set
• B)translating the budget and actual performance at the forecasted exchange rate
• C)translating the budget at the projected exchange rate and final results at the actual exchange rate
• D)translating the budget using the current-rate method and actual results at the new current-rate method

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Definitions:

Taxed

Refers to income, property, or purchases on which tax is imposed by governmental authorities.

Depreciation

The reduction in the value of an asset over time, particularly for tax purposes.

Equipment

Tangible property used in operations, such as machinery or computer hardware, which can often be depreciated for tax purposes.

Capital Asset

A long-term asset such as equipment, real estate, or securities, which is not easily sold in the regular course of a business's operations for cash.