Multinationals Have Many Sources for Estimates of Goods and Services

question 38

True/False

Multinationals have many sources for estimates of goods and services prices worldwide as well as the differentials that may be necessary when sending expatriates to particular locations.

---

Definitions:

Labour Rate Variance

The difference between the actual cost of labour and the standard or expected cost of labour.

Sales Volume Variances

Sales volume variances represent the difference between the actual quantity of product sold and the expected quantity sold, indicating market performance or operational efficiency.

Standard Costing

A cost accounting method that assigns expected costs to each unit of production to help managers identify variances between expected and actual costs.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard hourly rate.