When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is the maximum amount that the inventory can be valued at?
a. Sales price
b. Net realizable value
c. Historical cost
d. Net realizable value reduced by a normal profit margin
Answer: b. Net realizable value
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Which of the following is true of firms that compete in the global marketplace?
A. They must employ a domestic policy in order to have a competitive edge. B. They must employ a transnational policy in order to have a competitive edge. C. Because differentiation across countries can involve significant duplication and a lack of product standardization, it may reduce costs. D. Because differentiation across countries can involve significant duplication and a lack of product standardization, it may raise costs.
Which of the following statements about EDI is not true?
A) Each major industry in the United States has EDI standards. B) Today, EDI is only used for document automation. C) Many organizations still use private networks for EDI. D) EDI systems are increasingly web-enabled. E) About 80 percent of online B2B e-commerce is still based on EDI.