The functional currency concept is based on whether decision making at the foreign unit has been decentralized.

Name: The functional currency concept is based on whether decision making at the foreign unit has been decentralized.
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Question

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The functional currency concept is based on the currency of the primary economic environment in which the foreign unit operates. Decentralization of decision-making is not a factor in determining the functional currency.

The Functional Currency Concept Is Based on Whether Decision Making