Describe internal failure cost, with an example in a local restaurant
If a defective good (or service) is produced but the error is caught before the product leaves the production facility, then all costs associated with rework, scrap, and lost production time are classified as internal failure cost. For example, suppose that a customer ordered a thin-crust pizza with only vegetarian toppings. Let us assume that the pizza delivery company made a mistake in the order-taking process and produced a pizza with a thick crust and a pepperoni topping, but caught this mistake before the driver could deliver the pizza to the customer. All the costs associated with this mistake (i.e., the waste of a fully cooked pizza and the equipment and employee time used in the production of the wrong pizza) will be classified in the internal failure cost category.
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The Overseas Private Investment Corporation (OPIC) only operates as an insuring agency for companies investing in less developed countries
Indicate whether the statement is true or false
On June 18, Wyman Company (a U.S. Company) sold merchandise to the Nielsen Company of Denmark for €80,000 (Euros), with a payment due in 60 days. If the exchange rate was $1.55 per euro on the date of sale and $1.34 per euro on the date of payment, Wyman Company should recognize a foreign exchange gain or loss in the amount of:
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There is an International Organization of Securities Commissions made up of approximately 100 national securities agencies and exchanges which regulates about half of the world's securities markets
a. True b. False Indicate whether the statement is true or false