Is a Method of Going Global in Which a Company

question 49

Multiple Choice

is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.

• A) Acquisition
• B) Management contracting
• C) Direct investment
• D) Exporting
• E) Contract manufacturing

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Definitions:

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate overhead costs to products or services, calculated before the costs are actually incurred.

Direct Labor Cost

The total expense for all labor directly involved in the production of goods or services, excluding indirect labor costs like maintenance or supervision.

Estimated Overhead Cost

The anticipated cost of indirect expenses required to manage and operate a business over a specific period.

Actual Overhead

The real costs incurred from indirect expenses such as utilities, rent, and administrative salaries in the production process.