Reasons for shifting production to other countries John Deere is a global leader in the tractor market and its strategic objective is to expand rapidly outside of North America. One of the ways to expand globally is to make the product closer to the target market
Offshoring is the practice of a firm moving its service and production operations to a different nation. A corporation with American roots, John Deere is well recognised for assembling and producing agricultural tractors.
Samuel Allen, the company's CEO, predicts that Offshoring the company's tractor manufacture overseas will boost overall sales to $50 billion by 2018, with half of that amount coming from nations other than the US and Canada. Offshoring production would aid in growing the business to a worldwide scale in addition to boosting revenue.
Due to differences in time zones, the company's production processes and services would be available around the clock. The cost of manufacture would also be reduced by offshore tractor production.
The business would stop paying the costs of transporting tractors from the base production site to foreign nations. The need to exert more control, an effort to reduce risks, and a desire to concentrate on business development are some further justifications for outsourcing.
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Answer: Contract are mostly prevalent in the Union jobs which are the jobs in which employees are represented by an organizations which act as an intermediary between the employees and their employers.
This is done in order to ensure that employees are protected from future inevitable inflation that may come unexpectedly as it usually does.
The assumptions that are made in CVP analysis includes the following:
- costs can be classified as variable or fixed.
- costs are linear within the relevant range.
- constant fixed cost per unit.
<h3>What is CVP analysis?</h3>
Cost Volume Profit analysis is the type of analysis that has to do with the cost accounting. This type of analysis is one that takes the impact of the various costs and volume on profit.
It helps to check how the changes that occur in the variable and the fixed cost affect profit.
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Answer:
a. Journal entry to record music lesson
Date Account title and Explanation Debit Credit
October Cash $12,500
Service revenue $12,500
(To record music lesson for cash)
b. Journal entry to record prepaid insurance purchase
Date Account title and Explanation Debit Credit
October Prepaid insurance $3,660
Cash $3,660
(To record prepaid insurance paid for next year)
c. Journal entry to record musical equipment purchased
Date Account title and Explanation Debit Credit
October Equipment $15,500
Cash $15,500
(To record musical equipment purchase for cash)
d. Journal entry to record
Date Account title and Explanation Debit Credit
October Cash $21,000
Notes payable $21,000
(To record loan taken by signing a note)
