Thanks for correcting us too. It's "declination" not "variation."
And IF it's one of the models that isn't adjustable, then it will just point to magnetic north and as you say, you'll have to know to compensate for true north.
If you don't already have it I'd reccomand a book for you. It's:
Be Expert With Map and Compass by Bjorne Kjellstrom. The book was written in the 1950s but has been continuously updated. Mr. Kjellstrom intrduced the sport of orienteering and founded the Silva company.
LOL. It's not like a novel. It's fairly easy to read and understand (rather like the "whatever' for Dommies series) It's also divided into chapters that don't need to be sequntial (Map chapters, Compass chapters, Using the two together chapters, etc.) I read it the first time as a young teenager. It also includes some good practice excersizes.
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