What Is It Called When a Company Sends Some of Its

question 47

Multiple Choice

What is it called when a company sends some of its own managers overseas to conduct business in a local office?

• A) developing a strategic alliance
• B) outsourcing
• C) licensing products
• D) investing directly in a foreign venture
• E) opening a branch office

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Definitions:

Overhead Applied

The portion of manufacturing overhead costs assigned to each unit of production, based on a predetermined rate.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the activities they require.

Traditional Costing Method

A costing system that applies overhead costs to products based on a predetermined overhead rate, without regard to the actual activities that lead to those costs.

Unit Product Cost

The total cost associated with producing a single unit of output, including both variable and fixed costs.