Multinational Corporations, Locating in Developing Countries, Increasingly Are Producing Products

question 17

Multiple Choice

Multinational corporations, locating in developing countries, increasingly are producing products

• A) aimed at local markets.
• B) designed for export.
• C) that avoid environmental regulatory requirements.
• D) of poor quality.
• E) that are all of these.

---

Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate allocation of costs to products.

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.

Customer Margin

The profit generated from a particular customer, calculated by subtracting the costs directly associated with serving them from the revenue they generate.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities and resources that contribute to their creation and delivery.