For Multinational Organizations,which Structure Is Best When Both Global Integration

question 135

Multiple Choice

For multinational organizations,which structure is best when both global integration and local responsiveness are needed?

• A) global product division structure
• B) global area division structure
• C) global transnational division structure
• D) regional headquarters structure

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.