After Exporting,the Next Level of Commitment a Firm Can Make

question 34

Multiple Choice

After exporting,the next level of commitment a firm can make to a foreign market is a contractual agreement.Two of the most common types of such agreements are .

• A)contract manufacturing and strategic alliances
• B)warehousing and financing
• C)licensing and franchising
• D)contract manufacturing and contract marketing
• E)joint ventures and franchising

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Definitions:

FIFO

An accounting method used to manage inventory and cost of goods sold where the first items produced or acquired are the first to be sold.

Merchandise sold cost

The total expense incurred to produce or purchase the goods that have been sold to customers.

Perpetual system

An inventory accounting system that records purchases and sales of inventory immediately through the use of technology, offering continuous stock level information.

LIFO

An inventory valuation method that assumes the last items placed in inventory are the first ones sold ("Last In, First Out").