Which of the Following Can Induce a Firm to Expand

question 39

Multiple Choice

Which of the following can induce a firm to expand into the international arena?

• A) Consumer preferences in the domestic market vary widely.
• B) Average income level of domestic consumers is high.
• C) The firm operates in an industry that caters to the mass market.
• D) The firm finds that the domestic market is almost saturated.
• E) The firm is yet to achieve economies of scale even though the domestic market has potential.

---

Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost of labor at the standard rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost accounting.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on the predetermined rate.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the direct costs of production.