A US Manager Is Upset with His Overseas Representative in Fannelstan

question 20

Multiple Choice

A U.S. manager is upset with his overseas representative in Fannelstan for paying a small "access fee" to a local customs official to ensure the expedited release of a customer order. The manager's belief such payments are wrong reflects his sense of _____.

• A) cultural insensitivity
• B) ethical elitism
• C) ethical imperialism
• D) cultural integrity

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Definitions:

Machine-Hours

A measure of the amount of time machines are running in the production process, used to allocate manufacturing overhead costs.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to products based on the number of hours machines are used in the production process.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.