Which Description Best Defines a Multinational Company

question 14

Multiple Choice

Which description best defines a multinational company?

• A) an organization that builds facilities within the same country to facilitate large-scale exports to various countries
• B) an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs
• C) an organization that sets up one or a few facilities in one or a few foreign countries
• D) an organization that operates from one country and has customers from all over the globe
• E) a domestic organization that chooses to locate a facility using cultural differences as an advantage

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Definitions:

Total Direct Labor Cost Variance

The difference between the actual cost of direct labor used in production and the expected (or standard) cost.

Materials Price Variance

The difference between the actual cost of materials and the expected cost at standard prices, indicating how much was saved or overspent.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, valued at the standard cost.

Standard Material Requirement

The specified quantity of materials required to produce a set number of units of a product according to the standard production process.