A ________ Firm Is One That, by Operating in More

question 89

Multiple Choice

A ________ firm is one that, by operating in more than one country, gains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.

• A) global
• B) domestic
• C) federally chartered
• D) direct investment
• E) free trade zone

---

Definitions:

Activity Level

A measure of the volume of production or operations, often influencing variable costs and capacity planning.

Fixed Manufacturing Overhead

The consistent, non-variable costs incurred during the manufacturing process, not directly tied to production levels.

Volume Variance

The difference between the budgeted and actual volume of production, affecting fixed costs allocation.

Machine-Hours

A unit of measure representing the operation time of a machine, often used in allocating manufacturing costs based on machine usage.