Which of the Following Is a Disadvantage of the Home

question 7

Multiple Choice

Which of the following is a disadvantage of the home replication strategy? 

• A) It lacks local responsiveness. 
• B) It is organizationally complex and difficult to implement. 
• C) It focuses too much on the foreign country. 
• D) It has higher costs due to duplication of efforts in multiple countries.

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Definitions:

Unit Product Cost

The cost assigned to a single unit of product, combining direct materials, direct labor, and manufacturing overhead expenses.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual products based on a common activity base.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Manufacturing Cost

The total expense incurred in the process of producing goods, including materials, labor, and overhead.