Apart from business growth, there are a number of other good reasons for selling products internationally. Which of the following are valid reasons?
a. to spread risk
b. the firm has excess production capacity
c. to extend the product life cycle
d. all of the above
e. none of the above
d. all of the above
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In today's digital, mobile, and social media environments, many buyers are more receptive to — or even prefer — phone and online contact versus the high level of face-to-face contact once required
Indicate whether the statement is true or false
Cartel Inc owns 35 percent of Elliott Corporation. During the calendar year 2014, Elliott had net earnings of $300,000 and paid dividends of $36,000 . Cartel mistakenly accounted for the investment in Elliott using the cost method rather than the equity method of accounting. What effect would this have on the investment account and net income, respectively?
a. Understate, overstate b. Overstate, understate c. Overstate, overstate d. Understate, understate
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $75,000, what is the accounting rate of return? Ignore income taxes.
A. 26.67% B. 6.25% C. 25.00% D. 8.75%
Effective capacity is influenced by ______.
a. the nature of the product or service b. the number of suppliers involved c. the lead time for manufacturing a product d. the company‘s market share for that product