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Please provide a very detailed explanation to the question below. 1. Under the current rate method, all the expenses are translated using some form of
Please provide a very detailed explanation to the question below.
1. Under the current rate method, all the expenses are translated using some form of current period exchange rate. Under the temporal method, some expenses such as salaries and utilities are translated using current rates but others, such as cost of goods sold and depreciation expense, use historical rates. Why are different rates used by the two methods? After all, they are all expenses.
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