Which of the Following Is a Valid Example of Costs

question 9

Multiple Choice

Which of the following is a valid example of costs associated with global sourcing decisions?

• A) To reduce the effects of currency fluctuations retailers avoid the use of finan?cial instruments such as options and futures contracts.
• B) For American retailers in the U.S.A., inventory turnover is likely to be higher when purchasing from suppliers outside the United States than from domestic suppliers.
• C) The legal-political system in foreign countries should never impact the human resource management practices that retailers can use in those countries.
• D) If, for example, the Indian rupee increases relative to the Canadian dollar, the cost of private-label merchan?dise produced in India and imported for sale into Canada will decrease.
• E) If, for example, the Indian rupee decreases relative to the Canadian dollar, the cost of private-label merchan?dise produced in India and imported for sale into Canada will decrease.

Understand mutualism and its explanations for cooperative behavior.

Understand the concept of empathy and its role in prosocial behavior.

Recognize the influence of social learning and modeling on helping behaviors.

Analyze the impact of situational factors and cognitive models on the decision to help.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted, indicating the contribution towards covering fixed costs and generating profit.

Scarce Resource

An economic term referring to a resource that has limited availability in relation to its demand, leading to allocation decisions.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Alternative Choices

Different options or courses of action that can be taken in a decision-making process.