In Most Cases, the Reason Products Cost Relatively Little in One

question 93

Multiple Choice

In most cases, the reason products cost relatively little in one country and cost more in another is the

• A) profiteering measures taken by exporting companies.
• B) consistency in perception of quality in all countries.
• C) inelastic demand of most consumer goods.
• D) requirement that all export goods must use set skimmed price.
• E) higher costs of exporting.

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Definitions:

Residual Value

the estimated value that an asset will have at the end of its useful life.

Straight-Line Method

A depreciation technique that allocates an equal portion of an asset’s initial cost to each year of its useful life.

Book Value

The net value of an asset calculated as total assets minus total liabilities, shown on the balance sheet.

Units-Of-Production Method

A depreciation method that allocates the cost of an asset over its useful life based on the amount of production or use during the period.