Which of the Following Is an Advantage Related to Both

question 118

Multiple Choice

Which of the following is an advantage related to both relatively low level of fixed costs and low minimum efficient scale?

• A)A firm can hedge against potential adverse moves in currencies.
• B)Products can be standardized across different national markets.
• C)Firms can operate entirely out of their home countries.
• D)Product manufacturing can be limited to a single location.

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Definitions:

Posting Reference

An identifier used in journals and ledgers to link transactions, facilitating tracking and cross-referencing between the two records.

Two-Column Journal

A financial journal that has a simple format with only a debit and a credit column for recording transactions.

Transactions

Transactions involve the exchange of goods, services, or funds between two or more parties, forming the basic activities recorded in accounting.

Interim Financial Statements

Financial reports that cover a period of less than one year, often used to provide a snapshot of a company's financial health to investors and stakeholders on a quarterly or semi-annual basis.