In the Context of Compensation for an Expatriate, Which of the Following

question 69

Multiple Choice

In the context of compensation for an expatriate, which of the following statements is true of the home-country-based approach?

• A) It can result in higher employer costs and more administrative complexity than other plans.
• B) It compensates the expatriate at the same level as workers from the host country.
• C) It aims to significantly elevate the standard of living the expatriate had in the home country.
• D) It makes sense when the cost of living is substantially lower in the host country than in the home country.

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Definitions:

Idle Capacity

Idle capacity refers to the unused portion of the total capacity of a manufacturing unit which could otherwise be used to produce goods and generate revenue.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product costing.

Activity-Based Costing System

A costing methodology that assigns costs to products or services based on the activities they require and the resources consumed by these activities.

Direct Labor Cost

The cost associated with workers who are directly involved in the production of goods or services.