ACTG 2020 Lecture 6: ACTG Case Facts_ Piele
14 Jun 2016
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Document Summary
Manufacturer of natural leather in the republic of moldova. During the soviet regime the state financed the expansion of the company and also held all debt incurred by the firm. Ministry of industry held a restriction on quantities produced and mix"s to be used. Since the collapse of the soviet system, it cost more to import electrical power to the country before the cost was regulated by the soviet system. ***power expenses accounted for almost 20% of piele"s total product cost, and the new market prices were rising. Piele relied on domestic market for animal hides. ***primary raw materials for leather production, hides, accounted for almost. 55% of the total cost of products produced. ***piele had to pay value added tax (vat) when they acquired resources, rather than paying the vat when the outputs of their process were sold. Aria agency for the restructing of industrial companies.
