Outline the Three Main Contingencies That Seem to Influence the Structure

question 32

Essay

Outline the three main contingencies that seem to influence the structure adopted by firms with international operations.

---

Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a predetermined formula, prior to actual production.

Customizing Department

A division within a company that modifies products to meet specific requirements or preferences of customers.

Direct Labor-Hours

A measure of the time directly spent by workers on producing a product or delivering a service, often used to allocate manufacturing overhead.

Overhead Applied

The allocation of overhead costs to produced goods based on a pre-determined rate or basis such as direct labor hours or machine hours.