After Successfully Exporting Its Products Through Export Merchants, Boyes Inc

question 120

Multiple Choice

After successfully exporting its products through export merchants, Boyes Inc. decides to take control of its exports. It sets up its own unit in the home country that takes care of all export-related activities. Boyes Inc. is most likely using ________.

• A) foreign-based distributors or agents
• B) a domestic-based export department
• C) export merchants in foreign countries
• D) export-management companies
• E) traveling export sales representatives

---

Definitions:

Processing Cost

The expenses incurred during the transformation of raw materials into finished products, including labor, materials, and overhead.

Lead Time Demand

Lead time demand represents the total quantity of a product that is demanded by the market during the period it takes to replenish inventory, critical for effective inventory management.

Safety Inventory

Additional stock that is maintained to act as a safeguard against supply and demand uncertainties, ensuring product availability.

Holding Cost

The expenses incurred to store inventory, including warehousing, insurance, and depreciation, until the goods are sold or used.