Budget Translation. Goforth Drugs has a subsidiary in Belgium. The budget is set in late November each year with final approval at the Goforth headquarters in the U. S. in early December. The 1998 budget and the actual results for 1998 are as follows in Belgium francs:

\section*{Required:}
1. Compare the results of translating budget and actual amounts using:

(a) \(\mathrm{B}_{1}-\mathrm{A}_{3}\)

(b) \(\mathrm{B}_{2}-\mathrm{A}_{3}\)

(c) \(\mathrm{B}_{2}-\mathrm{A}_{2}\)

(d) \(\mathrm{B}_{3}-\mathrm{A}_{3}\)
2. Comment on the differences in the results.

Transcribed Image Text:

Budget Sales (in millions of francs) Cost of sales BF 2,000 Actual BF 1,980 (1,200) (1,250) Selling expenses (250) (220) Administrative expenses (230) (240) Taxes..... (100) (120) The relevant exchange rates for the Belgium franc at various dates were: November 1997.... $ 0.0300 Forecast for 1998 when the budget was prepared 0.0290 Actual at the end of 1998. 0.0285