In This Approach, the Base Expatriate Salary Is Linked to the Salary

question 8

Multiple Choice

In this approach, the base expatriate salary is linked to the salary structure in the host country.

• A) going rate
• B) balance sheet
• C) local plus
• D) laissez-faire

---

Definitions:

Variable Costing

An accounting method that includes all variable production costs (materials, labor, overhead) in product costs but treats fixed overhead expenses as period costs.

Reconciliation

The process of ensuring two sets of records (usually the balances of two accounts) are in agreement.

Variable Costing

A costing method where only variable production costs are included in product costs, with fixed overhead expenses treated as period costs.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs to highlight the contribution margin.