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Unformatted text preview: fruit sales were below the cost of production. Is this a reasonable approach to determining the production costs and fair market value of canned pineapple in the United States? Why or why not? Sample Answer: Yes, it is a reasonable approach to rely on the producers’ financial records, which are reasonably reflective of their costs because their normal allocation methodologies were used for a number of years. These records are historically relied on to present important financial information to shareholders, lenders, tax authorities, auditors, and other third parties. Provided that the producers’ records and books comply with generally accepted accounting principles and were verified by independent auditors, it is reasonable to use them to determine the production costs and fair market value of canned pineapple in the United States....
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This note was uploaded on 11/21/2011 for the course MGMT 4324 taught by Professor Tim during the Spring '11 term at Andhra University.
- Spring '11
- Business Law