For International Businesses to Achieve Vertical Differentiation, _____

question 42

Multiple Choice

For international businesses to achieve vertical differentiation, _____.

• A)a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers
• B)foreign and domestic operations should be grouped in such a way that the company effectively serves the needs of all customers
• C)the global structure must allow decisions to be made in the most appropriate area of the organization
• D)top level managers must emphasize flexibility and openness in organizational structure

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.

Units

A measure of quantity used to quantify the products, services, or resources dealt with in business operations.

Direct Labor Time Variance

The difference between the actual hours and the standard hours of direct labor spent producing a product multiplied by the standard direct labor rate per hour.

Direct Labor

The cost of employee wages that is directly associated with the manufacturing of products or the provision of services.