Which of the Following Is a Disadvantage of Adopting a Home

question 40

Multiple Choice

Which of the following is a disadvantage of adopting a home replication strategy?

• A) It often lacks local responsiveness.
• B) It is organizationally complex and difficult to implement.
• C) It focuses on the demands made by the foreign countries.
• D) It involves high costs due to duplication efforts in multiple countries than localization strategy.

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Definitions:

Activity-Based Costing

A pricing technique that allocates overheads and indirect expenses to associated services and products based on the activities involved.

Manufacturing Factory Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor expenses.

Production Department

Definition: A specific division within a company focused on the process of producing goods and services.

Factory Overhead Rate

A measure used to allocate the total factory overhead costs to units produced, based on a predetermined activity base.