Which of the Following Statements Is TRUE

question 26

Multiple Choice

Which of the following statements is TRUE?

• A) Most cooperative strategies are successful if the basic agreements are well written and include appropriate monitoring strategies.
• B) As many as 50% of cooperative strategies fail.
• C) Opportunistic behaviors are usually focused on gaining the use of the partner's manufacturing and financial resources.
• D) Problems with international cooperative strategies usually concern financial-system differences between the partners.

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Definitions:

Materials Quantity Variance

The difference between the actual and standard quantity of materials used times the standard price.

Materials Price Variance

The difference between the actual price and standard price of raw materials times the actual quantity used or purchased.

Direct Materials Price Variance

The difference between the actual cost and standard cost of materials used in production.

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected, multiplied by the standard cost per unit.