The Global Product Structure

question 52

Multiple Choice

The global product structure:

• A) utilizes country managers who are accountable for profit and loss of every product.
• B) fits well with customization of production or marketing.
• C) may result in competition among product divisions.
• D) will insure that all countries are covered well.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Actual Hours

The real number of hours worked, as opposed to planned or scheduled hours.

Standard Cost System

An accounting method that uses cost estimates for materials, labor, and overhead to control business costs.

Variable Overhead Spending Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the actual level of production activity.