Archives: Quiz

In the context of the distribution structure in Japan, it has been observed that Japanese consumers favor cheaper prices over personal service. The statements made by the parties during conciliation may be used as evidence in the subsequent litigation. Answer: […]

The single most important activity of international business negotiations is oration. Cultures with high Uncertainty Avoidance Index scores tend to have a low level of anxiety and stress. Answer: FALSE Cultures with high Uncertainty Avoidance Index scores are highly intolerant […]

International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures. Traditional channels in developing countries evolved from economies with a strong dependence on imported manufactured goods. Answer: TRUE Traditional channels in developing countries evolved from economies […]

The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries. In the context of planning for global markets, the planning process is a primary medium of organizational learning. Answer: TRUE The […]

Political and legal forces, economic climate, and competition are some of the domestic environment’s controllable factors. Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism. Answer: TRUE Economists in general recognize only […]

High-Power Distance Index countries are more egalitarian than low-Power Distance Index countries. According to traditional definitions, culture is transmitted from generation to generation. Answer: TRUE According to traditional definitions, culture is transmitted from generation to generation. TRUE Most traditional definitions […]

In difficult economic and political circumstances or otherwise, online trade shows are a perfect substitute for physical trade shows or trade fairs. The first stage of the business negotiation process is nontask sounding, which includes all those activities that might […]

In the context of international business negotiations, age and experience are known to affect the negotiation behaviors of individuals. The form of law found in the United States and England is classified as civil or code law. Answer: FALSE Common […]

The self-reference criterion is closely related to ethnocentrism. In a traditional distribution structure, distribution systems are national rather than local in scope. Answer: FALSE In the traditional distribution structure, distribution systems are local rather than national in scope. In the […]

One of the consistencies that marketers can look forward to when marketing products abroad is that almost all labeling laws worldwide are essentially the same. Setting the right price for a product can be the key to success or failure […]

Deflation causes consumer prices to escalate, and consumers face ever-rising prices that eventually exclude many of them from the market. For most companies, trade shows and direct selling are the major components in the marketing communications mix. Answer: FALSE For […]

In the context of international business negotiations, when faced with a complex negotiation task, most Asians divide the large task up into a series of smaller tasks. French business negotiators use the lowest percentage of self-disclosure yet, they also use, […]

Utilitarian ethics is the ethical principle that focuses on the optimization of the “common good.” Marketers with little or no understanding of a religion may readily offend deeply because the influence of religion is often quite strong. Answer: TRUE The […]

The majority of business customs fit into the cultural elective category. The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer. Answer: FALSE The channel process includes all activities, beginning with the manufacturer and […]

Big emerging markets are of major political importance within their regions. A fundamental premise of Japanese ideology reflects the importance of individualism and competitive spirit for economic progress. Answer: FALSE A fundamental premise of Japanese ideology reflects the importance of […]

Centralization of the marketing research ensures that the field personnel and resident managers have more intimate knowledge of the subtleties of the market. The degree of economic development can be used as a rough measure of a country’s industrial market. […]

One of the three variables,which affect the rate of diffusion of a product,is the product’s degree of perceived newness. The uncontrollable factors affecting international marketing are limited to political forces, economic climate, and competitive structure. Answer: FALSE Refer Exhibit 1.3-The […]

The U.S. Department of Commerce has mandated that all U.S. government purchases are conducted using the metric system. The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock. Answer: […]

In Europe, work councils are involved in setting compensation rules for sales people. The perception of quality, as perceived by highly industrialized and less-industrialized countries, is basically the same. Answer: FALSE Recent studies have demonstrated that perceptions of industrial product […]

The WTO is wholly dedicated toward making trade among nations more efficient. Only a limited number of American high-caliber sales personnel are willing to live abroad for extended periods of time as expatriates. Answer: TRUE Only a limited number of […]

As the prices for the same good are equal in different markets, a product sold in one country may be exported to another and can undercut the prices charged in that country. As countries move from agricultural to industrial to […]

Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit. In the context of international advertising, search engines have now become crucial directors of Internet users’ attention. Answer: TRUE […]

A majority of services enter foreign markets by licensing, franchising, or direct investment. Foreign investment can be perceived as a threat to sovereignty. Answer: TRUE Foreign investment can be perceived as a threat to sovereignty and thus become a rallying […]

Full-cost pricing is an approach to pricing that emphasizes that one unit of a product be different from the other and must, therefore, be priced differently. Spreading the portfolio of markets served brings important stability of revenues and operations to […]

Consumers in America tend to respond to rating scales more conservatively than Japanese. The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. […]

To be a success in the marketplace today, the best companies will focus on country as the primary segmentation variable. The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at […]

Easy accessibility of volumes of up-to-date secondary data is the biggest advantage that Internet now provides to international marketing researchers. Trade shows are important channel of advertising for consumer goods. Answer: FALSE In addition to advertising in print media and […]

If performance measures are perfect proxies for organizational goals, A. sub-optimization will be enhanced. B. sub-unit managers will strive to achieve organizational goals. C. sub-units can all be decentralized. D. residual income will rise. Which of the following is false […]

Hahn Corporation Hahn Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year. Manufacturing costs and selling and administrative expenses […]

Period costs include A. yes no yes B. no yes yes C. no no no D. yes yes yes An effective control system functions before, during, and after an event. However, little control is possible during the event for most […]

Holt Medical Corporation manufactures two models of a medical device: Model 101 and Model 102. Below is the current year production data for the company: The 210,000 units of material had a total cost of $1,365,000. Direct labor is $17 […]

Stillwater Corporation The following information is available for Stillwater Corporation for the current year: All materials are added at the start of production. Refer to Stillwater Corporation. Using weighted average, what are equivalent units for material? A. 82,000 B. 89,500 […]

Which of the following would not be an appropriate cost driver to measure internal failure? A. design error B. product failure C. machine reliability D. operator error An important focus in product life cycle costing is A. the activity base. […]

Annual after-tax corporate net income can be converted to annual after-tax cash flow by A. adding back the depreciation amount. B. deducting the depreciation amount. C. adding back the quantity (t x depreciation deduction), where t is the corporate tax […]

The three primary inventory accounts in a manufacturing company are A. Merchandise Inventory, Supplies Inventory, and Finished Goods Inventory. B. Merchandise Inventory, Work in Process Inventory, and Finished Goods Inventory. C. Supplies Inventory, Work in Process Inventory, and Finished Goods […]

Incremental revenues and costs need to be considered when using which allocation method? A. yes yes B. yes no C. no no D. no yes The combined weighted average interest rate that a firm incurs on its long-term debt, preferred […]

Deluxe Jewelry Corporation produces quality jewelry items for various retailers. For the coming year, it has estimated it will consume 500 ounces of gold. Its carrying costs for a year are $2 per ounce. No safety stock is maintained. If […]

A product may be processed beyond the split-off point if management believes that A. its marketability will be enhanced. B. the incremental cost of further processing will be less than the incremental revenue of further processing. C. the joint cost […]

Victoria Company Victoria Company manufactures three products in a joint process which costs $25,000. Each product can be sold at split-off or processed further and then sold. 10,000 units of each product are manufactured. The following information is available for […]

Grant Corporation The following information is available for Grant Corporation for the current month: All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation. What is […]

Service departments provide functional tasks for which of the following? A. no no B. yes no C. no yes D. yes yes Budgeted sales for the first six months for Pratt Company are listed below: Pratt Company has a policy […]

Commodore Company Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Commodore produced 5,000 units: Refer to Commodore Company. Using the four-variance […]

Michigan Company Ann Arbor Division of the Michigan Company has the following statistics for its most recent operations: Refer to Michigan Company. Compute EVA assuming the cost of capital is 10% and the tax rate is 40%. A. $ 90,000 […]

Chapman Company Chapman Company uses a job-order costing system. At the beginning of March, the company had two jobs in process with the following costs: Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour […]

The Statement of Cash Flows indicates the cash inflows and outflows from A. investing, financing, and borrowing activities. B. operating, investing, and sending activities. C. merchandising, financing, and investing activities. D. operating, investing, and financing activities. At the end of […]

Which of the following statements is true for a firm that uses variable costing? A. The cost of a unit of product changes because of changes in the number of units manufactured. B. Profits fluctuate with sales. C. An idle […]

Hunnicutt Company is a construction company that builds greenhouses on special request. What is the proper classification of the carpenters’ wages? A. yes yes no B. yes no yes C. no no no D. no yes yes Ultimate Vision Corporation […]

In a job-order costing system, the use of indirect material would usually be reflected in the general ledger as an increase in A. stores control. B. work in process control. C. manufacturing overhead applied. D. manufacturing overhead control. Under the […]

A process costing system is used by a company that A. produces heterogeneous products. B. produces items by special request of customers. C. produces homogeneous products. D. accumulates costs by job. Stewart Company The following information relates to financial projections […]

A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at $40 per unit, the CM ratio at 60 percent, and profit at $500,000. What is the firm […]