As an Exporter,Delios Trading Wants to Be Paid Before a Consignment

question 25

Multiple Choice

As an exporter,Delios Trading wants to be paid before a consignment is shipped.Correspondingly,its importer in Japan,Abe Imports,wants to pay only upon receipt of the consignment.These conflicting preferences of Delios Trading and Abe Imports are most likely a manifestation of

• A)corporate greed.
• B)acculturation.
• C)lack of trust.
• D)cultural insensitivity.
• E)countertrading opportunities.

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Definitions:

Average-cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.

Cost of Goods Sold

The specific costs incurred during the manufacturing of a company's merchandise for sale.

Inventory

The raw materials, work-in-process products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.