Which of the Following Statements Is NOT True Concerning Reasons

question 54

Multiple Choice

Which of the following statements is NOT true concerning reasons for analyzing foreign financial statements?

• A)It is important to determine the financial stability of foreign suppliers.
• B)The stock returns of foreign corporations are nearly perfectly correlated with returns on U.S.stocks.
• C)In a global economy, managers may use foreign competitors as benchmarks for evaluating performance.
• D)Managers should determine the financial health of foreign customers before extending credit.

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Definitions:

Sales Manager's Salary

The compensation paid to the individual responsible for directing and managing a company's sales team and strategies.

Flexible Budget

A financial planning tool that can be modified based on actual operating figures, providing a more relevant comparison of actual to budgeted performance.

Variable Cost

Expenses that change in proportion to the activity or volume of production, such as raw materials and direct labor costs.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies.