All of the Following Are Correct About What Managers Should

question 5

Multiple Choice

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT:

• A) continuous adjustments are needed based on the nature of competition encountered.
• B) the actual strategic choices made are most compelling reasons for success or failure.
• C) success is guaranteed as the firm implements its chosen international business-level strategy.
• D) the determinants of national competitive advantage provide a foundation for a firm's competitive advantages.

---

Definitions:

Variable Costing

An accounting method that includes only variable production costs in product cost, excluding fixed manufacturing overhead.

Absorption Costing

An accounting method where all of the costs associated with manufacturing a product are absorbed by the units produced.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent and salaries of managers.

Fixed Manufacturing Overhead

The consistent, indirect costs associated with manufacturing that do not vary with the level of production, such as rent, insurance, and salaries of permanent staff.