Fulsom Exporting Prefers That Customers Who Pay in Advance Use

question 36

Multiple Choice

Fulsom Exporting prefers that customers who pay in advance use a wire transfer. What is the most likely reason for this preference?

• A) protection from FDIC
• B) immediate access to funds
• C) minimal interest rates and fees
• D) protection from currency fluctuation

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Definitions:

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial loss.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Labor

Human effort, whether physical or mental, contributed to the production of goods and services.

Materials

The physical components used in the production of goods and services.