The Distinction Between Legitimate Competitive Intelligence and Industrial Espionage

question 46

Multiple Choice

The distinction between legitimate competitive intelligence and industrial espionage:

• A)Is clearly defined by legislation and case law relating to trade secrets
• B)Is not always clear
• C)Is non-existent - they overlap
• D)Is easily resolved by hiring a good lawyer

---

Definitions:

Conversion Costs

The sum of direct labor and overhead costs, which are incurred to convert raw materials into finished products.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

Weighted-Average Method

A costing method that averages the cost of inventory by taking the weight of each item's cost to calculate a combined average cost for all units.

Process Costing System

An accounting method used in manufacturing where costs are assigned to processes or departments, suitable for homogeneous products.