In Calculating Schedule Variance and Cost Variance, a Negative Variance

question 81

True/False

In calculating schedule variance and cost variance, a negative variance indicates a desirable condition, and a positive variance suggests problems.

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Definitions:

Translation Exposure

The potential risk of value change in a company's financial statements due to the conversion of foreign currencies into the domestic currency in consolidation.

Exchange Rate Risk

The potential for investors or companies to experience losses due to fluctuations in the exchange rates between currencies.