The calculation of FC exchange differences is much easier if direct exchange rates are used rather than indirect exchange rates.

Question

Quizplus · Accepted Answer

When direct exchange rates are used, the exchange difference can be directly calculated by subtracting the previous period's exchange rate from the current period's exchange rate. With indirect exchange rates, the calculation involves dividing one by the exchange rate and then subtracting the previous period's rate from the current period's rate. This extra step can make the calculation more complex.

The Calculation of FC Exchange Differences Is Much Easier If