As We Go from Home Operations to International Operations,we Can

question 48

Multiple Choice

As we go from home operations to international operations,we can potentially receive a ________,but we can also see our ________ increase.

• A)diversification benefit; systematic risk
• B)diversification disadvantage; total risk
• C)diversification disadvantage; systematic risk
• D)diversification benefit; total risk

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Definitions:

Work in Process

A stage in the production process that includes goods partially completed; not yet ready for sale.

Factory Overhead

Indirect costs incurred during the manufacturing process, such as utilities, maintenance, and salaries, that are not directly tied to production.

Direct Labor Costs

Wages and benefits paid to employees who are directly involved in the production of goods or services.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead, rent, and administrative salaries.