Which of the Following Is a Way That a Company

question 35

Multiple Choice

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

• A)reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
• B)declare components as obsolete inventory with no market value to lower import duties.
• C)ocean transportation rates are affected by weight and volume;unassembled goods may qualify for lower freight rates.
• D)ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
• E)have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.

Recognize the importance of equitable contributions in equity allocation among founders and investors.

Understand the concept and value of sweat equity in starting a business.

Recognize bootstrapping as a financial strategy for starting a business with minimal resources.

Identify crowdsourcing as a method for gathering information, ideas, or services from a large group of people.

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Definitions:

Fixed Manufacturing Overhead Volume Variance

The difference between budgeted fixed manufacturing overhead and the amount applied to production, based on standard hours.

Standard Direct Labour-Hours

The estimated amount of labor time that should be required to produce one unit of a product.

Fixed Manufacturing Overhead Rate

The rate at which fixed manufacturing overhead costs are allocated to products, typically based on labor hours or machine hours.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.