A Disadvantage(s)of Indirect Exporting Is

question 68

Multiple Choice

A disadvantage(s) of indirect exporting is:

• A)foreign business can be lost if exporter changes supply sources
• B)no expertise or large cash outlays are required
• C)the firm gains little experience from transactions
• D)foreign business can be lost if exporter changes supply sources and the firm gains little experience from transactions
• E)firms find it hard to set sales offices in foreign countries

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Definitions:

Cost Of Goods Manufactured

The total expense incurred by a company to produce goods in a given period, including materials, labor, and overhead costs.

Direct Materials

Raw materials that can be directly attributed to the production of goods, visually identifiable in the final product.

Direct Labor

The wages and associated costs of employees who are directly involved in the production of goods or services.

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to the units produced, based on a predetermined formula.