Final answer:
International accounting for computer manufacturing companies enables economies of scale but may involve challenges like government pricing control. Financial reporting is affected by such issues and profitability can be illustrated with AC, MC, and AVC curves in financial statements.
Step-by-step explanation:
International accounting for computer manufacturing companies comes with various advantages and disadvantages. One of the notable advantages is the benefit of economies of scale, which allows large companies to compete internationally, providing competition benefits and product variety to customers. However, there are also challenges, such as dealing with different accounting standards. For example, a company operating in China, where the government controls prices, might have difficulty measuring the true cost of production. This affects financial reporting and profitability analysis.
When considering international accounting, one must understand the potential for pricing control by the government, as in China, which could lead to difficulties in assessing the true cost of production. Issues such as anti-dumping complaints can also impact international trade and financial statements. To illustrate financial performance, a graph with Average Cost (AC), Marginal Cost (MC), and Average Variable Cost (AVC) curves should be sketched, indicating the profitability or loss when selling computers at a specific price point.