Which of the Following Statements Is True in the Context

question 63

Multiple Choice

Which of the following statements is true in the context of local demand conditions?

• A) Companies are typically least sensitive to the needs of their closest customers.
• B) Home demand plays little role in helping companies upgrade their national competitive advantage.
• C) A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding.
• D) The characteristics of international demand alone shape the attributes of a company's products; not local demand.
• E) Local demand characteristics have little role to play in creating pressure for innovation and quality.

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Definitions:

Factory Overhead Rates

A measure used to allocate the costs of operating a factory, which cannot be directly tied to specific units produced, over the units produced.

Direct Labor Hours

The total hours worked by employees who are directly involved in producing goods or providing services.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to units of product.

Finished Goods

Items that are finished being made but have not been purchased by consumers yet.