Which of the Following Is the Most Risky for an Importer

question 51

Multiple Choice

Which of the following is the most risky for an importer?

• A) Open account
• B) Irrevocable letter of credit
• C) Bank collection time draft
• D) Cash in Advance
• E) None of the above

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Definitions:

Manufacturing Cost

The total expense incurred in the process of producing a product, including raw materials, labor, and overhead costs.

Production Increase

An upsurge in the amount of goods or services produced by a company within a specific time frame.

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and direct labor.

Units Sold

The total quantity of products that a company sells during a specific period.