Direct Exporting Is When a Company Sells Its Products Directly

question 13

True/False

Direct exporting is when a company sells its products directly to buyers in a target market.Indirect exporting occurs when a company sells its products to intermediaries who then resell to buyers in a target market.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the total production cost.

Administrative Expense

Costs related to the general management and administration of a company, such as salaries of executive personnel, accounting departments, and front office.

Direct Labor Cost

The cost associated with employees who directly contribute to the production of goods, such as wages for factory workers.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period.