1. Open Economy vs. Closed Economy •Open Economy A country has an open economy if it is joining international trade, which exporting and importing are collectively together. Selling or buying of goods or services to a foreign country is allowed in this kind of economy. The Market-economy is mostly free from trade barriers and where exports and imports form a large percentage of the GDP. Imports give citizens of a country access to products and services provided by other nations, which allows for more consumer freedom because people have a wider range of choices.
Exports allow companies and citizens to break into other markets to find new buyers for their products. Consumers also have an opportunity to invest their savings outside of the country. The open economy actively encourages importing any goods or services that cannot be produced domestically at competitive prices. The open economy motivates the interaction in a global community. •Closed Economy Closed economy focuses on all economic transactions inward rather than outward. No activity conducted with outside economies.
The idea behind the closed economy is to meet all consumer needs with the purchase and sale of goods and services that are produced within the economy’s borders. In addition to meeting the needs and desires of all consumers within the economy, the method also excludes the possibility of exporting goods and services. Thus, the economy is considered to be completely self-sufficient, meaning that no imports are brought in and no exports are sent out. Closed economy is definitely built on the concept of isolation from other countries.
answer the questions
there are two different assignment:
The fist one is
What costs would the Stellar Pizza robotic pizza restaurant capitalize or expense?Stellar Pizza has a pizza-making robotic machine that was built by three former SpaceX engineers. More than 23 former SpaceX employees work at Stellar Pizza. The pizza-making robot can produce a pizza every 45 seconds. A pizza can be customized, baked, and topped in less than five minutes by the robotic machine.
Stellar Pizza will be in operation in the spring of 2022 in Los Angeles. The pizza-making robot will fit into the back of a truck. View this video
(3:36 minutes) that shows the Stellar Pizza robotic machine in action.Questions
Would Stellar capitalize or expense the cost of the robotic pizza-making machine?
Would Stellar capitalize or expense the cost of the truck to house the robotic pizza-making machine?
Would Stellar capitalize or expense the cost of the ingredients used to top the pizzas (i.e., pepperoni, mushrooms, onions, and cheese)?
If Stellar needs to replace the controller cables after the robotic machine is used for 2,000 hours, is the cost of those controller cables capitalized or expensed by Stellar? Why does it matter?
What is the impact of capitalizing an item on the balance sheet? On the income statement?
What is the impact of expensing an item on the balance sheet? On the income statement?
The second one is
What do you think? Logitech Please read the discussion about Logitech and their inventory in the file attached and answer the following questions which are also in the same file.
QuestionsThere is no indication that Logitech staff accountants knew of the improper inventory accounting during 2010 – 2011. However, assume that one Logitech staff accountant did indeed know of the issue and answer the following questions.1. What steps should the staff accountant have taken once aware of the inventory issue?2. Why might the staff accountant have remained silent even if aware of the inventory issue? 3. What might have happened to the staff accountant if the SEC had discovered that the staff accountant knew of the inventory issue at the time but remained silent?
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