All of the Following Are Reasons Why International Opportunities Should

question 295

Multiple Choice

All of the following are reasons why international opportunities should be considered by managers, EXCEPT

• A) the world is getting smaller.
• B) serving international markets may improve economies of scale.
• C) favorable trends at home and unfavorable trends in other countries make international marketing particularly attractive.
• D) around the world, potential customers have needs and money to spend.
• E) it helps to develop a competitive advantage at home and abroad.

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Definitions:

Conversion Cost

The combined cost of labor and manufacturing overheads spent on converting raw materials into finished goods.

Direct Materials

Basic substances that can be directly linked to the manufacture of a particular product or service.

Equivalent Units

A concept used in cost accounting to convert units of production into an amount of completed units, facilitating the calculation of costs per unit.

Finished Units

Completed products that are ready for sale or distribution at the end of a manufacturing process.