What Is the Practice of Moving a Business Process to a Foreign

question 44

Multiple Choice

What is the practice of moving a business process to a foreign country but retaining control of it?

• A) exporting
• B) farshoring
• C) offshoring
• D) outsourcing
• E) backsourcing

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Definitions:

Weighted-Average Cost Method

An inventory valuation method that assigns a weighted average cost to each unit of inventory, used to calculate cost of goods sold and ending inventory value.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished products.

Blending Department

A specialized sector within a manufacturing operation where various inputs are combined to produce a homogeneous product.

Weighted-Average Method

An inventory costing method that averages the costs of goods available for sale to determine the cost of goods sold and ending inventory.