What Would Be the Most Effective Way to Launch a KFC

question 91

Multiple Choice

What would be the most effective way to launch a KFC franchise in China?

• A) develop an alliance with another Asian KFC franchise,such as in Japan or Taiwan,and share the risk in China
• B) develop a consortium of Western and Asian entrepreneurs to begin the KFC franchise in China
• C) develop a joint venture with government bodies in China
• D) develop a relationship with a broker in Singapore to identify sources for Asian venture capital

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Definitions:

Variable Overhead

Costs that vary with production volume, including such expenses as indirect materials, supplies, and utilities for the production process.

Efficiency Variance

A measure in cost accounting used to assess the difference between the actual input used in production and the standard input expected to be used, for cost control purposes.

Direct Labour Hour

A measure of labor directly involved in manufacturing or production, calculated by the amount of time workers spend on specific tasks.

Fixed Overhead

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.