The Transnational Model Is Characterized By

question 73

Multiple Choice

The transnational model is characterized by:

• A) using shared vision and values to achieve coordination in this horizontal structure.
• B) being one step short of the matrix in exploiting both global and local advantages for the corporation as well as multiple interrelated competitive issues.
• C) has a single headquarters and a single center of control for each country and for each product line.
• D) there is no single corporate headquarters, but there is a clear hierarchical responsibility.

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Definitions:

Absorption Costing

A bookkeeping strategy that encompasses all production expenses, including direct materials, direct labor, and variable plus fixed overhead, into the pricing of a product.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed overhead expenses as period costs.

Variable Costing Income

An accounting method that considers only variable costs—costs that vary with production—when determining cost of goods sold and, ultimately, income.

Fixed Overhead Cost

Indirect fixed costs associated with the production process, such as rent and insurance, that do not vary with the level of output.