All of the Following Are Benefits of a Multisite Type

question 32

Multiple Choice

All of the following are benefits of a multisite type of expansion except ________.

• A) ability to reach a mass market quickly
• B) reduced financial risk from local economic downturn
• C) preemption of competitors by capturing premium locations
• D) retention of control

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Definitions:

FIFO Costing Assumption

An inventory valuation method that assumes the items purchased or produced first are sold first, thereby calculating the costs based on earliest prices.

Income Taxes

Taxes levied by governments on the income generated by individuals or businesses.

LIFO Assumption

A method of inventory valuation where the last items placed into inventory are the first ones to be used or sold.

Inventory Costing Method

A system used to assign costs to inventory and determine the cost of goods sold, examples include FIFO, LIFO, and weighted average.