When a Firms ʺDumpsʺ Some of Its Products in Another

question 71

Multiple Choice

When a firms ʺdumpsʺ some of its products in another country, it

• A) increases the total level of employment in the receiving country.
• B) is specializing according to comparative advantage.
• C) creates an environmental hazard in the receiving country.
• D) sells its products abroad at a price lower than it costs to produce the goods.

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Definitions:

Step-down Method

An allocation method used in cost accounting to distribute overhead costs from service departments to producing departments based on a hierarchy of service relationships.

Number Of Employees

The total count of individuals working for a company, including full-time, part-time, and temporary staff.

Step-down Method

An approach to allocating service department costs to production departments based on a hierarchical sequence of services provided.

Administrative Department

A segment of a company responsible for managing the general operations and ensuring the smooth functioning of the business.