Two Japanese Firms-Mikato,Ltd

question 63

Multiple Choice

Two Japanese firms-Mikato,Ltd.,and Shuzushi,Ltd.-enter into a joint venture in an attempt to in-crease their market share of the U.S.auto market.If the joint venture is not a per se violation of U.S.antitrust laws,a U.S.court could ex-ercise jurisdiction over the firms

• A)if the joint venture has a substantial effect on U.S.commerce.
• B)if the joint venture has any effect on U.S.commerce.
• C)if the joint venture was entered into in the United States.
• D)under no circumstances.

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Definitions:

Process Costing

An accounting methodology used for assigning production costs to units of output, particularly suitable for continuous production processes.

Cost Per Equivalent Unit

The total production cost divided by the number of equivalent units produced, used to assign costs in process costing.

Materials Cost

The cost of materials directly used in the production of goods.

Process Costing

An accounting methodology used in manufacturing where costs are applied to a batch of products rather than individual items, suitable for homogeneous products.