_____ During 2006, Pavlox Had Intercompany Sales to a Foreign

Multiple Choice

_____ During 2006, Pavlox had intercompany sales to a foreign subsidiary. Pavlox uses the U.S. dollar unit of measure approach. Pavlox should calculate the amount of any unrealized intercompany profit using the

A) Current exchange rate.
B) Average exchange rate.
C) Historical exchange rate.
D) Nominal exchange rate.
E) None of the above.