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A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran are expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?
Historical Cost
The original purchase price or cost of acquiring an asset, not adjusted for inflation or market changes.
Equity Method
An accounting technique used to record investments in other companies, recognizing the investor's share of the investee's net income.
Parent Company
A company that holds enough voting stock in another firm to control management and operations by influencing or electing its board of directors.
Consolidated Financial Statements
Financial reports that combine the accounts of a parent company and its subsidiaries into a single document.
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