One Characteristic of Exporting That Many First-Time Exporters Do Not

question 44

Multiple Choice

One characteristic of exporting that many first-time exporters do not realize is that

• A) many foreign customers require face-to-face negotiations on their home turf.
• B) large firms tend to wait for the world to come to them, rather than going out into the world to seek opportunities.
• C) exporters have the advantage of reduced paperwork and fewer formalities.
• D) medium-size and small firms are proactive about seeking opportunities for profitable exporting.
• E) firms that focus only on exporting often lose out on significant opportunities for growth and cost reduction.

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Definitions:

Fixed Factory Overhead Volume Variance

A measure used in cost accounting to determine the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Costs

Standard costs are the predetermined costs associated with manufacturing a product or delivering a service, used as benchmarks to measure performance.

Actual Costs

The real expenses incurred in the production or acquisition of goods and services.

Direct Labor Rate Variance

This measures the difference between the actual cost of direct labor and the expected (or standard) cost, calculated by comparing the actual rates paid to workers versus the planned rates.