Which of the Following Is a Way That a Company

question 24

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)ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
• B)if labor costs are lower in the importing country,substantial savings may be realized in the final product cost.
• C)have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
• D)declare components as obsolete inventory with no market value to lower import duties.
• E)reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.

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Definitions:

Rent

Rent is the payment made by a tenant to a landlord for the use of a property, equipment, or other assets for a specified period.

Warehouse

A warehouse is a large storage building where goods are stored before they are distributed for sale or further processed.

Employer Pension Costs

Expenses incurred by employers to fund retirement benefit plans for their employees.

Direct Labor Hour

A direct labor hour measures the actual time spent by workers directly involved in the production of goods or services, used for costing and operational efficiency.