3M Has Built Its Export Success on All of These

question 67

Multiple Choice

3M has built its export success on all of these principles except:

• A) adding additional product lines once export operation is successful.
• B) cultivating personal relationships with customers.
• C) hiring local to promote the firm's products.
• D) entering on a small scale to reduce risks.
• E) using a first mover strategy.

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Definitions:

Overhead Pools

Aggregations of indirect costs or overheads that are then allocated to products or services based on predetermined criteria.

Cost of Activities

The expenses associated with specific actions or operations within a company.

Reciprocal Method

A complex cost allocation method that recognizes interactions among service departments and allocates costs accordingly.

Support Department Costs

The costs associated with departments that do not directly produce goods or services but provide necessary support to production departments, such as maintenance, accounting, and human resources.