Which of the Following Is an Example of Direct Exporting

question 14

Multiple Choice

Which of the following is an example of direct exporting?

• A)a paint manufacturing company allows a local manufacturer to produce its paint products by licensing its technology
• B)a lab equipment manufacturer in Korea sells its products through a local retail chain in India
• C)a company exporting gems in India sells its gems through a jewellery retailer in Australia
• D)a kitchen boutique sells its kitchen appliances in the host country by using its own retail outlets
• E)a British company sells its machinery to a Canadian manufacturer who is licensed to
• Produce and market goods in that country

---

Definitions:

Work in Process

Inventory that includes partially completed goods that are still undergoing manufacturing or production processes.

Cost of Goods Sold

The total cost associated with producing the goods sold by a business, including materials, labor, and manufacturing overhead.

Direct Labour-hours

The total number of hours worked by employees directly involved in the production process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs and activity levels.