________ Is a Hidden Cost to Basing Production in a Foreign

question 16

Multiple Choice

________ is a hidden cost to basing production in a foreign location.

• A) Low employee turnover
• B) Low labor cost
• C) Poor product quality
• D) Expensive higher education system
• E) Low inventory turnover

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Definitions:

Raw Material

Raw material refers to the basic, untreated resources that are used in the manufacturing process to produce finished goods.

Raw Materials Inventory

The total cost of all raw materials that are yet to be used in production.

Gallons

A unit of volume measurement used primarily in the United States to quantify liquids.

Standard Costs

Predetermined costs for manufacturing a product, used for budgeting and assessing performance.