The Canadian Dollar Has Been Appreciating Against the US Dollar

question 109

Essay

The Canadian dollar has been appreciating against the US dollar, but has held steady against other currencies.You have been asked by the CEO to prepare a marketing plan for entering EU countries.One of the key elements of your marketing plan is to price in Euros.What are the pros and cons of this currency strategy?

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Definitions:

Direct Labor Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected for the production achieved.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost of those materials.

DL Wage Variance

The difference between the budgeted wage and the actual wage paid to direct labor employees.

DL Efficiency Variance

The difference between the actual hours worked by direct labor to produce goods and the expected (or standard) hours, multiplied by the standard labor rate.