Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 53

You are the purchasing agent for a U.S. business that purchases merchandise on account from companies in Mexico. The exchange rate for the Mexican peso has been falling against the U.S. dollar and the trend is expected to continue for at least several months. Would you prefer that the prices for purchases from the Mexican companies be specified in U.S. dollars or in Mexican pesos? Explain.