Which of the Following Is True of Large Multinational Markets

question 111

Multiple Choice

Which of the following is true of large multinational markets?

• A) They lead to negligible marketing efficiencies.
• B) They are incapable of achieving economies of scale.
• C) They are particularly important to businesses not accustomed to mass production.
• D) They result in decreased purchasing power.
• E) They employ coordinated programs to foster economic growth.

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Definitions:

Fixed Manufacturing Overhead

The total of all production costs that do not change with the level of production output, such as salaries of managers, rent, and property taxes.

Variable Costing

Variable Costing is an accounting method that only assigns variable costs to inventory, treating fixed costs as period expenses.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs.

Total Gross Margin

This is the difference between sales revenue and the cost of goods sold, before deducting administrative and selling expenses.