The Motivation for Much of the Foreign Direct Investment by Non-U.S.firms

question 13

Multiple Choice

The motivation for much of the foreign direct investment by non-U.S.firms was the desire to:

• A)disperse production activities to optimal locations and to build a direct presence in major foreign markets.
• B)dilute the influence of the U.S.firms in global markets.
• C)accelerate the spread of globalization to the poorer countries of Africa.
• D)protect their domestic markets from competition from U.S.companies.

Comprehend the principles of internal control within the context of job order cost accounting.

Know the impact of sales on cost accounts like Cost of Goods Sold and Work in Process Inventory.

Differentiate between job order costing and process costing with respect to their application scenarios.

Understand the flow of costs in job order costing, including the recording of transactions related to raw materials, labor, and overhead.

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Definitions:

Profit

The financial gain achieved when the revenue from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, important for decision-making in pricing and production levels.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit cost of production.

Maximizing Profit

The process by which a company determines the price and output level that generates the maximum amount of profit.