Patch Products Is an Australian Company That Has Given Permission

question 137

Multiple Choice

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it did which of the following?

• A)must only pay a minimal royalty to the licensed companies
• B)cannot control how the puzzles are manufactured
• C)has involved itself in the global marketing strategy that gives it the greatest amount of control
• D)chose a method of global marketing that created minimal risk

Understand the implications of changing accounting estimates on financial statements.

Calculate accumulated depreciation for assets under straight-line and accelerated depreciation methods.

Understand how depreciation methods impact financial reporting and tax implications.

Recognize obsolescence and its effect on the depreciation and carrying amount of assets.

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Definitions:

Outsourced Production

The practice of contracting external parties to produce goods or deliver services traditionally performed by the company's own employees or facilities.

Trade Agreement

A treaty or pact between two or more nations that outlines how they will work together to ensure mutual benefits in trade.