If Materials and Components Are Shipped to a FTZ for Further

question 9

True/False

If materials and components are shipped to a FTZ for further processing and finished products are sold in the United States, a U.S.import tariff will be assessed on the value of the materials and components, rather than on the value of the finished products.

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Definitions:

Average Sale Period

The average time it takes for a company to convert its inventory into sales, often used in analyzing a company's efficiency.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including the cost of the materials and labor directly used to create the good.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Inventory Turnover

A ratio indicating how many times a company has sold and replaced inventory during a certain period of time.