A(n)________ Advantage Is the One That a Company Gains from Incorporating

question 75

Multiple Choice

A(n) ________ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market.

• A) ownership
• B) internalization
• C) location
• D) comparative

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Definitions:

Weighted-Average Method

A cost accounting method that calculates inventory and the cost of goods sold based on the average cost of all similar items in inventory.

First-In-First-Out (FIFO)

An inventory valuation method where the first items produced or acquired are the first to be sold or used, reflecting the chronological flow of goods.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit in inventory, used in both periodic and perpetual inventory systems.

Cost Control

The practice of managing and reducing business expenses through efficient operations and spending.