Many MNCs evaluate annual performance by comparing actual operating performance to a budget. If one exchange rate is used to translate the budget and another exchange rate is used to translate actual results, the total variance between budget and actual will be a function of: 1. Sales volume variance 2. Local currency price and quantity variances 3. The difference in exchange rates used to translate budgeted profit and actual profit Multiple choice question. 

1 and 2 

1 and 3 

1, 2, and 3 

2 and 3