Scale Systems, an MNE, Analyzes the Needs of Its Customers

question 36

Multiple Choice

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

• A) ethnocentric approach
• B) polycentric approach
• C) geocentric approach
• D) transnational approach

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Definitions:

Manufacturing Overhead Rate

A calculation used in costing that allocates indirect manufacturing costs to products based on a predetermined factor, such as machine hours or labor costs.

Machine-Hours

A measure of production time that quantifies the number of hours a machine is in operation, used for allocating manufacturing costs related to machinery use.

Manufacturing Departments

Divisions within a manufacturing facility, each specialized in a particular aspect of the production process.

Overhead Rate

The rate at which indirect manufacturing costs are allocated to products or services.