Which One of the Following Is Not a Potential Source

question 63

Multiple Choice

Which one of the following is not a potential source of economies of scope for firms pursuing international strategies?

• A) To develop new core competencies
• B) To manage corporate risk
• C) To control countertrade
• D) To gain access to low-cost factors of production

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Definitions:

Traditional Costing System

A costing methodology that allocates overhead costs to products based on a predetermined overhead rate, often using a single cost driver.

Overhead Cost Per Unit

The allocation of overhead costs to individual units of product, giving a full cost picture of each unit produced.

Product-Level Activity

Activities and costs incurred for a specific product, regardless of the number of units or batches produced.

Testing Prototype

The process of evaluating the initial example of a product to assess its functionality, design, and performance before mass production.