If Strategists in a Firm Believe That Centralizing Key Activities

question 16

Multiple Choice

If strategists in a firm believe that centralizing key activities such as R&D is necessary to reduce coordination costs and to achieve economies of scale,they are more likely to choose

• A)An international strategy.
• B)A transnational strategy.
• C)A local strategy.
• D)None of the above

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Definitions:

Traceable Fixed Costs

Fixed costs that can be directly associated with a specific cost object, such as a product, department, or project, and disappear if the cost object is eliminated.

Variable Costs

Expenses that vary directly with changes in production volume or service levels.

Joint Products

Products that are produced simultaneously from the same process or batch of raw materials.

Split-off Point

The stage in a joint production process where distinct products become separately identifiable.