Question: Break down the price variance into a charge variance and an exchange variance. What do these variances tell you? Note that the charge variance is
Break down the price variance into a charge variance and an exchange variance. What do these variances tell you? Note that the charge variance is based solely on the difference between the budgeted price and actual price (based on the currency rate used in the organizations budget). The exchange variance is based solely on the difference between budgeted exchange rate and the exchange rate actually used in paying the invoice.
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To solve this problem we need to break down the total price variance into two components the charge variance and the exchange variance Lets analyze th... View full answer
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