For Which of the Following Reasons Might a Firm Choose

question 66

Multiple Choice

For which of the following reasons might a firm choose to trade technology?

• A)To facilitate first-mover advantages
• B)To avoid development costs
• C)To build barriers to entry
• D)To partner with competitors
• E)To create diseconomies of scope

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Definitions:

Direct Labor-Hours

A measurement of the actual amount of production work done by employees, expressed in hours, not involving indirect labor.

Overhead Assigned

The allocation of overhead costs to specific products or cost centers within a company.

Materials Handling

The moving, protection, storage, and control of materials and products throughout manufacturing, warehousing, and distribution.

Direct Labor-Hours

The total hours of labor work directly on manufacturing the goods or providing the services, used for allocating labor costs to products or services.