When a Single Manufacturing Process Yields Two Products, One of Which

question 64

Multiple Choice

When a single manufacturing process yields two products, one of which has a relatively high sales value compared to the other, the two products are respectively known as

• A)joint products and byproducts.
• B)joint products and scrap.
• C)main products and byproducts.
• D)main products and joint products.
• E)byproducts and scrap.

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Definitions:

Dividends

Return on capital of corporation paid by company to shareholders in either cash or stock; payments made out of a firm’s earnings to its owners, either in cash or stock.

Foreign Subsidiary

A foreign subsidiary is a company owned or controlled by another company, referred to as the parent company, which is located in a country different from the subsidiary.

Dollar/Peso Exchange Rate

The rate at which the currency of the United States (dollar) can be exchanged for the currency of countries using the peso.

Short Run Exchange Rate Risk

Short run exchange rate risk pertains to the potential for losses that investors or companies face due to fluctuations in the exchange rates between currencies in the near term.