What Challenges Must Be Met by an Enterprise System of a Multinational

question 19

Multiple Choice

What challenges must be met by an enterprise system of a multinational company?

• A)different operating systems
• B)disparities in support services
• C)varying laws and customs rules
• D)inconsistencies in the business processes

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, leading to more accurate product costing.

Departmental Overhead Rate Method

The departmental overhead rate method allocates overhead costs to specific departments based on their respective operational metrics, helping in accurate product costing and profitability analysis.

Plantwide Overhead Rate

The rate calculated to allocate the total overhead costs uniformly across all products or services in a plant or factory.

Overhead Allocation Base

A measure or standard used to distribute indirect costs to various cost objects, such as products or departments, typically involving labor hours, machine hours, or cost centers.