What are some of the costs associated with sourcing merchandise globally?
What will be an ideal response?
The costs associated with sourcing merchandise globally include the relative value of foreign currencies, tariffs, longer lead times, and increased transportation costs. Import tariffs have been used to shield domestic manufacturers from foreign competition. In the longer term, the relative value of foreign currencies can have a strong influence on the cost of imported merchandise. Because lead times are longer and more uncertain, retailers using foreign sources must maintain larger inventories to ensure that the merchandise is available when the customer wants it. Larger inventories mean larger inventory carrying costs. Finally, transportation costs are higher when merchandise is produced in foreign countries.
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Antidumping law has been called unfair for all of the following reasons EXCEPT
a. they do not reflect currency fluctuations. b. they are based on average variable cost. c. they are based on average total cost. d. U.S. firms selling at home are not subject to the same rules.
Why is process value analysis not part of the general ledger accounting system?
A chief executive officer is telling a board of directors how much revenue was raised by renting out excess building space. This action is an example of ______.
A. being underwater B. managing fixed assets C. liquid asset management D. assessing long-term solvency
Sweet Company's outstanding stock consists of 1300 shares of cumulative 5% preferred stock with a $100 par value and 10,300 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend DeclaredYear 1$2300?Year 2$6300?Year 3$33,500?The total amount of dividends paid to preferred and common shareholders over the three-year period is:
A. $12,800 preferred; $29,300 common. B. $15,300 preferred; $26,800 common. C. $19,500 preferred; $22,600 common. D. $13,000 preferred; $29,100 common. E. $6500 preferred; $35,600 common.