________ Are Those Factors That Make It Desirable for a Firm

question 56

Multiple Choice

________ are those factors that make it desirable for a firm to produce a good or service itself rather than contracting with another firm to produce it.

• A) Ownership advantages
• B) National competitive advantages.
• C) Internalization advantages
• D) Resource availabilities

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Definitions:

Materials Costs

Expenses incurred in the acquisition of raw materials used in production.

Conversion Cost

The sum of direct labor and manufacturing overhead costs, representing the expense to convert raw materials into finished products.

Ending Work

Ending work often refers to the inventory of unfinished goods at the end of an accounting period.

Conversion Cost

Costs incurred during the manufacturing process, which include direct labor and overhead costs, to convert raw materials into finished products.