Use the following information to answer question 13 and 14 Imo Corporation (a U.S. based company) has a wholly-owned subsidiary in Argentina, whose manager is being evaluated on the basis of the variance between actual profit and budgeted profited in U.S. dollar. Imo has three choices of foreign currency rates: Actual exchange rate at time of budget prepared Projected future exchange rate at time of budget prepared Actual exchange rate at end of budget period 13. Five combinations of above exchange rates make sense to translate budget and actual results to USS. Which of the following is not one of these five combinations? A) Translate budget and actual results using projected exchange rate. B) Translate budget at the initial exchange rate and translate actual results using ending exchange rate. C) Translate budget at projected ending exchange rate and translate actual results using ending rates. D) Translate budget at actual ending exchange rate and translate actual results using projected ending rates 14. If the subsidiary manager has the authority to hedge against unexpected changes in the exchange rate, which combination would be appropriate? A) Translate budget and actual results using ending exchange rate. B) Translate budget and actual results using projected exchange rate. C) Translate budget and actual results using the projected exchange rate. D) Translate budget at projected ending exchange rate and translate actual results using actual ending exchange rate. 15. Household Products Corporation (a U.S.-based company) has a foreign subsidiary. The foreign subsidiary imports inventory for U.S. The foreign currency depreciated last year and the subsidiary showed a net loss of 5,000,000, but the subsidiary's manager received a bonus for outstanding performance. Why would Household Products' management control system appropriately allow for this apparent inconsistency? A) The manager mitigated economic exposure through switching to local suppliers to purchase inventory. B) Household Products' management control system is ineffective. C) The bonus represents a payoff to subsidiary's manager to keep her quiet about the loss. D) The loss was due to controllable factors