Which of the Following Is an Example of a Cost

question 111

Multiple Choice

Which of the following is an example of a cost motive for the formation of multinational enterprises?

• A) avoiding tariffs by obtaining foreign manufacturing facilities
• B) to utilize less productive foreign labor
• C) to have production farther from markets for the finished good
• D) to pay higher corporate taxes

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Definitions:

Periodic Inventory System

An inventory accounting system where inventory counts and cost of goods sold calculations are made at set intervals, such as monthly or yearly.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any cash discounts.

General Journal Entries

The recordings of financial transactions in the general journal, including both the debit and credit sides of each transaction.

Gross Margin Ratio

Gross margin ratio is a financial metric that measures a company's gross profit relative to its sales revenue, indicating the efficiency of production and pricing strategies.