Which of the Following Is Likely to Happen When Our

question 32

Multiple Choice

Which of the following is likely to happen when our company exports through its own sales branches located in foreign countries?

• A)We get less aggressive selling than if we use foreign trade middlemen.
• B)Our company avoids having to pay tariffs.
• C)We are not limited by import quotas.
• D)We now have the major task of managing a sales force of (1)foreign nationals unfamiliar with our practices or (2)Americans who are unfamiliar with the foreign market.
• E)None of these usually occurs.

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Definitions:

Support Department Costs

Expenses that are not directly tied to the production of goods or services but are necessary for supporting the operations of a business, like IT or HR departments.

Direct Method

A way of presenting the cash flow statement where major classes of gross cash receipts and payments are disclosed, offering a more straightforward view of cash flow from operating activities.

Cafeteria Department Costs

Expenses associated with operating a company's cafeteria, including food, labor, and overhead costs.

Sequential Method

A procedure in cost accounting for allocating service department costs to producing departments in a specific order.