Tariffs Are Computed: I.As a Percentage of Value (Ad Valorem)

question 21

Multiple Choice

Tariffs are computed:
I.As a percentage of value (ad valorem) .
II.On the basis of physical units (specific) .

• A) I only.
• B) II only.
• C) Both I and II.
• D) Neither I nor II.

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Definitions:

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts.

Ending Inventory

The total value of all goods still available for sale at the end of an accounting period.

Beginning Inventory

The amount of inventory a company has at the start of an accounting period.

Markup

The sum added onto the purchase price of products to encompass both overhead expenses and profit margins.