Zanda Corp

question 15

Multiple Choice

Zanda Corp.has always operated within one country.It is contemplating opening production facilities in another country.Zanda should realize:

• A)Production processes used domestically should work well in a different country.
• B)The means of motivating the workforce domestically may not work well in a different country.
• C)The technology used domestically is often the best to use in a different country.
• D)The same business model that is used domestically should apply to the foreign country.

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Definitions:

Materials Quantity Variance

A financial metric used in cost accounting to measure the difference between the actual quantity of materials used in production and the expected quantity.

Cost of Goods Sold

The immediate expenses related to the production of a company's sold goods, involving materials and labor.

Labor Efficiency Variance

Labor efficiency variance is a measure of the difference between the actual hours worked by employees versus the standard or expected hours worked to produce a certain amount of goods.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost, used in managerial accounting to monitor labor cost efficiency.