When a US-Based MNC Wants to Determine Whether to Establish a Subsidiary

question 70

True/False

When a U.S.-based MNC wants to determine whether to establish a subsidiary in a foreign country, it will always accept that project if the foreign currency is expected to appreciate.

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Definitions:

Actual Results

The actual outcomes or figures achieved, compared against forecasts or budgeted amounts.

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production, reflecting price fluctuations.

Standard Cost System

An accounting system that uses predetermined costs for products or services to compare against actual costs for performance evaluation.

Actual Results

The real outcomes or final figures that have been achieved by a business after a specific period, which can be compared against forecasts or budgets.