In the 1980s,Japan Agreed to Limit the Quantity of Automobiles

question 155

Multiple Choice

In the 1980s,Japan agreed to limit the quantity of automobiles it would export to the United States.Why did the Japanese government agree to this trade restriction?

• A)Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.
• B)The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers.
• C)The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S.government.
• D)The Japanese government wanted more automobiles to be available for export to countries other than the United States.

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Definitions:

Costing System

A method used by businesses to track, record, and analyze costs associated with their products or services to ensure profitability.

Process Costing Method

An accounting methodology used to allocate production costs to products based on the process they undergo, typically in industries where goods are produced in a continuous fashion.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, or overhead costs in terms of fully completed units of production.

Costs Per Equivalent Unit

The calculation of the cost to produce one standard unit of production, considering work done to date.