An Agreement Negotiated by Two Countries That Places a Numerical

question 46

Multiple Choice

An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called

• A)a non-tariff trade barrier.
• B)an export quota.
• C)an import quota.
• D)a voluntary export restraint.

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Definitions:

Retail Method

An accounting method used to estimate inventory value by applying a cost-to-retail price ratio, based on the beginning inventory plus purchases, less the sales at retail.

Inventory Costing

The method used to value and account for inventory, including costs of purchase, production, and conversion.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated after considering the cost of goods sold and any new purchases.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing such items.