Product Modifications Are Often Required When Entering Foreign Markets

question 7

Multiple Choice

Product modifications are often required when entering foreign markets. One approach is to build country specific product features on a global platform. This strategy is known as _______________ and allows the firm to cater to the needs of customers in various markets while controlling production cost.

• A) Global outsourcing
• B) Mass customization
• C) Multi-domestic production
• D) Cross cultural manufacturing

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Definitions:

Facility-Level Costs

Fixed costs that do not vary with the level of production or output, associated with maintaining a production facility.

Activity-Based Costing

An accounting method that allocates costs to products or services based on the activities and resources consumed in the production or delivery process.

Overhead Assignment

The process of allocating indirect costs (or overheads) to various cost objects such as products, projects, or departments.

Product Cost

The total expenses incurred to produce and prepare a product for sale, including materials, labor, and overhead.