Exporting May Not Be Appropriate If Lower-Cost Locations for Manufacturing

question 37

True/False

Exporting may not be appropriate if lower-cost locations for manufacturing the product can be found abroad.

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Definitions:

Predetermined Overhead Rate

An estimated charge used to apply manufacturing indirect costs to individual products or job orders, based on a chosen activity base.

Direct Labor-Hours

A measure of the work time spent by employees directly involved in the production of goods or services.

Machine-Hours

A measurement of production output or activity based on the number of hours machines are operated in the manufacturing process.

Machining Department

A specific division within a manufacturing plant where machining, a process of shaping metal or other materials, is carried out.