In Terms of Global Business Strategy and Structure, a Multinational

question 19

Multiple Choice

In terms of global business strategy and structure, a multinational company will use a policy of

• A) mixed sales and marketing, with centralized production, accounting, human resources, and strategic management.
• B) centralized production, accounting, marketing, human resources, with strategic management.
• C) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
• D) dispersed production and marketing, with centralized accounting and strategic management.

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Definitions:

Direct Material

Raw materials that can be directly attributed to the production of specific goods or services, utilized in their creation.

Direct Labour Cost

A cost that can be directly attributed to the production of specific goods or services, such as wages paid to employees who physically produce a product.

Overhead Applied

The portion of indirect costs allocated to a specific product or department within a company, based on a predetermined overhead rate.

Cost of Goods Sold

The immediate expenses linked to the creation of products sold by a business, encompassing both materials and labor costs.