Firms Able to Continually Improve the Processes Used to Produce

question 121

Multiple Choice

Firms able to continually improve the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to:

• A) learn how to continuously reduce costs while increasing the value of their products.
• B) increase investment in research and development.
• C) access a low-cost labor force in the host market.
• D) mitigate cultural differences.

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Definitions:

Recognition

In accounting, recognition refers to the formal recording of an item in the financial statements, acknowledging its existence and the fact that it meets the criteria for financial reporting.

Revenue

Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Deferral

A deferral occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset.

Unearned Revenue

Money received by a business for goods or services that have yet to be delivered or performed.