The Method of Entering a Foreign Market That Presents the Least

question 44

Multiple Choice

The method of entering a foreign market that presents the least amount of risk for a company is ________.

• A) joint venturing
• B) direct investment
• C) exporting
• D) joint ownership
• E) contract manufacturing

---

Definitions:

Conversion Costs

Costs required to convert raw materials into finished products, typically including direct labor and manufacturing overhead.

FIFO Method

First-In, First-Out method; an inventory valuation method where goods purchased or produced first are sold or used first.

Process Costing

A costing method used for homogeneous products, where the cost of each product is assumed to be identical to the cost of every other product.

Equivalent Units

A method used in cost accounting to measure the work done on inventory during a period, which considers partially completed units as a fraction of a full unit.