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4 years ago

The first step a domestic firm takes when entering an international arena is usually to create an international division.

Business

1 answer:

vodomira [7]4 years ago

4 0

Answer:

The answer is: False

Explanation:

Whenever a company wants to go international it has a lot work to do before creating an international division. Several things must be done before, mostly research, for example:

Research if your product is know overseas, is there any possible market for it, are there any restraints for your products in those new markets.
Any legal constraint or logistical problem you have to consider.
Any local competition you have to worry about.
Does your product fit in a new culture.
And very many etceteras.

That should all be done before considering spending money on creating an international division.

Probably when the internet didn´t exist, communications were scarce, no Tv existed, people in one country didn´t know anything about other cultures, etc., a comp nay would have first created an international division to scout foreign markets but right now it doesn´t make sense.

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The theory of comparative advantage states that:

Stella [2.4K]

Answer:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Explanation:

This is the best option with the theory of comparative advantage states countries produce goods for which they have a lower opportunity cost. Having resources and talents lower the opportunities cost. When countries do this, it increases economic welfare for all.

6 0

3 years ago

Assume that on November 1, 2019, a 3-month rent payment for $8,000 per month (for a total of $24,000) was made with respect to a

ziro4ka [17]

Answer:

Rent Expense Dr.$16,000

Bank Dr.$48,000

Prepaid Rent Cr.$64,000

Explanation:

The company entered into lease on 1st November 2019 with rent of $8,000 per month. the company on 1st November 2019 recorded prepaid rent as follows; which is wrong

Prepaid Rent Dr. $72,000

Bank Cr. $72,000

This is wrong entry as prepaid rent was overstated by ($72,000-$24,000 ) $48,000 and same like bank was understated by $48,000

The correct entry should have been like this as on 1st November 2019;

Prepaid Rent Dr. $24,000

Bank Cr. $ 24,000

By 31st December 2019, two months rent have already accrued so prepaid rent should be credited by (8000*2+48,000 for additional amount recorded)

So the rectifying entry is; as on 31st December 2019

Rent Expense Dr.$16,000

Bank Dr.$48,000

Prepaid Rent Cr.$64,000

7 0

3 years ago

Which of the following statements are true? All costs in a merchandising company are period costs. Inventoriable costs are expen

Maslowich

Answer:

Period costs are expensed when incurred and Period costs do not flow through the inventory accounts.

Explanation:

Period Costs are not included in the valuation of the product and these mostly include all non-manufacturing costs. They are included as an expense in the period in which they are incurred.

5 0

3 years ago

A company purchased $10,700 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $850

Karolina [17]

Answer:

a. $10,003.

Explanation:

The terms of 2/10, n/45 means that there is a 2% discount if the payment is made within 10 days of the sales date and rhe net credit period is 45 days.

Calculate total invoice value

Total Invoice value = Merchandise value + Freight Charges = $10,700 + $850 = $11,550

As the payment is made on June 24 within the discount period, the discount will be availed

Discount = ( Purchases made - Returns ) x 2% = ( $10,700 - $1,360 ) x 2% = $186.80 = $187

Now the Amount paid

Amount Paid = Invoice value - Return - Discount avaialed = $11,550 - $1360 - 187 = $10,003

3 0

3 years ago

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in p

Dennis_Churaev [7]

Answer:

1-a. Predetermined overhead rate for the year.= 1.4

1-b. The underapplied overhead for the year$ 4,600

2. Cost of goods manufactured $ 425,000

3-a.Un adjusted Cost of Goods Sold $ 442,000

3-b. Underapplied or Overapplied overhead Treatment

1) Underapplied overhead may be closed to Cost og goods Sold.

2) It can be separately allocated to WIP , FG and CGS in the proportion of OH applied.

4. Job 215 Price Estimated 155% of $ 13240= $ 20,522

<h2>Explanation:</h2>

1-a. Predetermined overhead rate for the year.

Total Overhead / Direct Material Cost= $123,200 /$88,000= 1.4

1-b. The underapplied or overapplied overhead for the year

Applied OH=Actual Direct Material Cost* Predetermine Rate = $136,000* 1.4= $ 190400

Actual Overhead = $ 195,000

Underapplied Overhead = $ 195,000-$ 190400=$ 4,600

Gitano Products

Cost of goods manufactured Schedule

Raw Materials Beginning $21,000

Add Purchase of raw materials $130,000

Less Raw Materials Ending $15,000

Direct Materials Used $ 136,000

Direct labor cost $84,000

Manufacturing overhead costs: 195,000

Indirect labor $110,500

Property taxes $8,100

Depreciation of equipment $19,000

Maintenance $15,000

Insurance $9,400

Rent, building $33,000

Total Manufacturing Costs $ 415,000

Add Work in Process Beginning $46,000

Cost of goods available for manufacture $ 461,000

Less Work in Process Ending $36,000

Cost of goods manufactured $ 425,000

3-a. Unadjusted cost of goods sold for the year

Cost of goods manufactured $ 425,000

Add Finished Goods Beginning $75,000

Cost of Goods Available for Sale $500,000

Less Finished Goods Ending $58,000

Un adjusted Cost of Goods Sold $ 442,000

3-b. Underapplied or Overapplied overhead Treatment

1) Underapplied overhead may be closed to Cost og goods Sold.

2) It can be separately allocated to WIP , FG and CGS in the proportion of OH applied.

4. Job 215 price

Direct Materials $3,600

Direct Labor $4,600

Applied Overhead ( 1.4 * 3600) = $ 5040

Total Manufacturing Cost = $ 13240

Price Estimated 155% of $ 13240= $ 20,522

6 0

3 years ago