A Major Pitfall of Exporting Is Misclassifying Products in Terms

question 34

True/False

A major pitfall of exporting is misclassifying products in terms of the destination country's tariff schedule, thereby incurring a higher tax or slower delivery.

---

Definitions:

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period, used to allocate overhead costs to products or job orders based on a certain activity.

Customizing Department

A specialized division within a company dedicated to tailoring products or services to individual customer specifications or preferences.

Job-Order Costing System

A costing system that accumulates costs individually for each job.

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in the process of manufacturing or in delivering services.