During a Stormy Meeting of Wearable Technology Firms, Several Company

question 63

Multiple Choice

During a stormy meeting of wearable technology firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry where companies need protection until they grow to a size that will allow them to be competitive. As a result, these companies would like to see which of the following?

• A) increased import quotas
• B) increased import tariffs
• C) an increase in the value of the Canadian dollar
• D) increased taxes on domestic technology firms

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Definitions:

Machine Hours

A measure of the amount of time a machine is run, used in cost accounting to allocate expenses to products or job orders.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Conversion Costs

The sum of labor costs and overhead costs associated with the manufacturing process, used to convert raw materials into finished products.

Factory Overhead Costs

Indirect manufacturing costs that are not directly tied to the production of goods, such as utilities, maintenance, and management salaries.