PlastiPharm would want to perform the additional testing because:
- The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)
- Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)
<h3>
Why do manufacturers carry out testing?</h3>
Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.
This way, their liability from product defects is reduced or eliminated completely.
Learn more about testing at;
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Answer:
The answer is $330,000
Explanation:
Cash paid to suppliers is the total amount of cash paid to its creditors.
We can find that through:
Cost of sold
Minus: Decrease in inventory
Plus: Decrease in accounts payable
=Cash paid to suppliers.
Now let's start:
Cost of sold - $450,000
Decrease in inventory - $160,000
Decrease in accounts payable- $40,000
$450,000 - $160,000 + $40,000
=$330,000
Therefore, Cash paid to suppliers is $330,000
Answer:
C. $200 net loss
Explanation:
The net loss or gain is calculated on hedging to determine whether the hedge has been beneficial for the company or not. Hedging is a process to transfer exchange rate movement risk. This is usually suitable for the companies who have receipts or payments in foreign currencies.
The hedging gain loss can be calculated as:
Forward rate at the time of contract - spot rate today
$1.21 - 1.232 = 0.0232
Answer:
A cottage industry is a small-scale, decentralized manufacturing business often operated out of a home rather than a purpose-built facility. Cottage industries are defined by the amount of investment required to start, as well as the number of people employed.
