A Major Challenge to Global Positioning Systems in Providing Foreign-Exchange

question 2

Multiple Choice

A major challenge to Global Positioning Systems in providing foreign-exchange services to its clients is that ________.

• A) GPS lacks access to major foreign exchange quoting services
• B) GPS has to constantly upgrade the quality of the services it offers
• C) GPS cannot provide individualized attention to its customers, so it has to commoditize its product lines
• D) new regulations have stopped GPS from selling foreign-exchange services that compete with the banks

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Definitions:

Indirect Materials

Materials used in the production process that cannot be easily traced to specific products, such as lubricants and cleaning supplies.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Manufacturing Overhead

Includes all manufacturing costs other than direct materials and direct labor, encompassing expenses such as depreciation, electricity, and maintenance of factory facilities.

Cost of Goods Sold

The total cost directly associated with producing goods that have been sold, including materials, labor, and overhead costs.