The Greater the Pressures for Cost Reductions Are,the Most Likely

question 142

Multiple Choice

The greater the pressures for cost reductions are,the most likely a firm will want to pursue some combination of:

• A)licensing and joint venture.
• B)exporting and wholly owned subsidiaries.
• C)franchising and exporting.
• D)joint ventures and wholly owned subsidiaries.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.

Process Costing System

An accounting method used for homogenous products, allocating production costs based on the processes or departments through which the products pass.

Work in Process Inventory

Items that are in the process of being produced but are not yet complete.