Answer:
Royal Chocolatier is licensing their product line to American Candy.
Explanation:
Licensing agreements are useful because both the licensee (company receiving the license) and licensor (company granting the license) are benefited:
- The licensor benefits since the licensee bears all the costs and risks of the new activity.
- The licensee is able to sell a well established and recognized brand without having to develop the brand themselves.
Licensing results in the licensee bearing the costs and risks.
Answer:
enter into a joint venture.
Explanation:
Based on the information provided within the question it can be said that the company's best option in this scenario would be to enter into a joint venture. This term refers to a business arrangement where various parties agree to combine all of their resources (including personnel) in order to achieve the same goal. Which would benefit the metal fabrication company since the partner company would provide the knowledge and experience of the host country market and they would in term provide more resources to the partnership.
Answer:
C. $1,370,000
Explanation:
Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity
Direct material $340,000
Direct labor $610,000
Allocated variable overhead $420,000
Minimum bid price $1,370,000
($340,000+$610,000+$420,000)
Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000
Explanation:
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When accounting for a long-term construction contract under IFRS, if the percentage-of-completion method is not appropriate, the seller should account for revenue using "cost recovery method".
<h3>What is cost recovery method?</h3>
According to the "Cost Recovery Rule," any excess cash value (cost basis) over premium payments that results from a partial withdrawal of cash or a policy surrender is taxable income.
Calculation for cost recovery method includes:
- the product's operating expenses, such as those for hardware, software, and labour, should all be added up.
- Analyse whole revenue, regardless of whether a client made a lump-sum payment or several instalments.
- To calculate the profit, deduct the cost of products from whole sales.
To know more about the lump-sum payment, here
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