Business people must understand international trade theory because many of the decisions made by government officials are based on it.

Florian Plant Services completed a special landscaping job for Pierre Designs Company

Florian uses ABC and has the following predetermined overhead allocation rates: Predetermined Overhead Activity Allocation Base Allocation Rate Designing Number of designs $275 per design Planting Number of plants $15 per plant The Pierre Designs project required $1,200 in landscape materials, $700 in direct labor, one design, and 35 plants. Requirements: 1. What is the total cost of the work done for Pierre Designs? 2. If Pierre Designs paid $3,900 for the job, what is the operating income or loss? 3. If Florian desires an operating income of 50% of cost, how much should the company charge for the Pierre Designs project? What will be an ideal response

The executive of a certain company states that the firm should adopt the benchmark practices only of other firms in the same industry, as business conditions in other industries are significantly different Which of the following is the underlying assumption in his argument?

A) The argument assumes that business practices are nontransferable across industries. B) The argument assumes that firms cannot find unique and significantly better ways of doing things by looking outside their competitor set. C) The argument suggests that noncompetitors face different business conditions that make appropriate comparisons difficult. D) The argument is based on the assumption that benchmarking is an ineffective tool for investigating best practices of other firms.