Why do most international businesses require all budgets


Problem: Why do most international businesses require all budgets and performance data within the firm to be expressed in the "corporate currency"? Multiple choice question. It allows subsidiaries to finalize the budget without having to seek approval from the headquarter management. It is politically correct to measure performance in domestic currency It is unaffected by exchange rate changes during the year and prevents distortions. It allows for easier comparison between subsidiaries in different countries.

 

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Accounting Basics: Why do most international businesses require all budgets
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