Increasingly,small Businesses Are Expanding Internationally to

question 96

Multiple Choice

Increasingly,small businesses are expanding internationally to

• A)obtain raw materials.
• B)gain access to skilled labor.
• C)create job opportunities for domestic employees.
• D)take advantage of government incentives.

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Definitions:

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory balance using a weighted average of the costs of all items available for sale during the period.

FIFO Costing

An inventory valuation method that assumes that the first items placed in inventory are the first ones sold, standing for First In, First Out.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Direct Materials

Raw materials that can be directly traced to the production process of a good or service, constituting a significant part of the total cost of production.