Swenson's Ice Cream Is Doing Business in Somalia

question 12

Multiple Choice

Swenson's Ice Cream is doing business in Somalia.After three successful years of operating three ice cream parlors in the country,the Somali government took over the three ice cream parlors and began operating them and keeping the money paid by customers.
-Which of the following terms applies to this action by the Somali government?

• A)Sovereign immunity
• B)Expropriation
• C)Repatriation
• D)Protectionism

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Definitions:

Direct Materials Cost Variance

The difference between the budgeted cost of materials and the actual cost incurred for materials used in production.

Standard Materials Cost

The budgeted or estimated cost of raw materials required for production, used for cost control and variance analysis.

Material Used

The raw materials that have been consumed in the production process to create goods.

Total Labor Cost Variance

This refers to the difference between the actual labor costs incurred and the standard labor costs for the actual production levels.