Which of the Following Is NOT a Reason Why Companies

question 46

Multiple Choice

Which of the following is NOT a reason why companies move into international operations?

• A) To develop new markets for the firm's products.
• B) To better serve their primary customers.
• C) Because important raw materials are located abroad.
• D) To increase their inventory levels.
• E) To take advantage of lower production costs in regions where labor costs are relatively low.

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Definitions:

Managerial Accounting

Managerial accounting involves the provision of financial information to management for decision-making, planning, and control purposes.

Financial Accounting

The field of accounting focused on the summarization, analysis, and reporting of financial transactions pertaining to a business.

External Users

Individuals or entities outside a company who use its financial information, such as investors, creditors, and regulatory bodies.

Internal Users

Individuals inside a company who use financial information to make decisions, such as managers.