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(Figure: A Firm's Production With and Without Offshoring I) If component parts become relatively cheaper abroad, this firm will have an incentive:
Retroactive Change
A change applied to past periods or transactions in financial records or systems, typically to correct errors or implement new information.
Revised Estimated
Revised estimated refers to the updated projection or calculation of a particular metric, budget, schedule, or plan based on new information or changes in circumstance.
Salvage Value
The calculated end-life value of an asset after its utility period is over.
Double-Declining-Balance Method
An accelerated method of depreciation that doubles the regular depreciation rate, reducing the asset’s book value more quickly in the early years of its life.
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