Which of the Following Is NOT an Example of Diversifying

question 50

Multiple Choice

Which of the following is NOT an example of diversifying operations?

• A) diversifying sales
• B) diversifying location of operations
• C) raising funds in more than one country
• D) sourcing raw materials in more than one country

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Definitions:

Factory Overhead

Costs associated with running a factory that are not directly tied to a specific product, including utilities and salaries for management.

Product Costs

Product costs are the direct expenses associated with manufacturing a product, including direct labor, raw materials, and manufacturing overhead.

Prime Costs

The combination of direct material and direct labor expenses incurred in producing a product.

Direct Materials

Raw materials that can be directly traced to the production of finished goods, considered a variable cost and included in the calculation of the cost of goods sold.