The Apple IPhone Is Sold in a Box Labeled "Made

question 45

Multiple Choice

The Apple iPhone is sold in a box labeled "Made in China," but a study by economists at the Asian Development Bank found that the actual percentage of the price of the iPhone accounted for by the only work done in China,which is assembly,is

• A)4 percent.
• B)12 percent.
• C)25 percent.
• D)65 percent.

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Budgeted Sales Data

Projections or estimates of the sales revenue expected to be achieved in a future period.

Cash Receipts

The collection of money, typically in the form of cash, checks, or electronic transfers, for goods or services received.

Direct Materials Budget

A financial plan that estimates the quantity and cost of direct materials required for production during a specific period.