An International Entry Strategy in Which the Organisation Is Involved

question 85

Multiple Choice

An international entry strategy in which the organisation is involved in managing its production facilities in a foreign country is known as:

• A) a joint venture
• B) a licensing agreement
• C) a franchise
• D) a wholly owned foreign affiliate
• E) a direct investment.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the standard cost, indicating how much was saved or overspent on materials.

Direct Material Used

Direct material used refers to the raw materials that are directly incorporated into a product being manufactured.

Materials Purchased

The total cost of raw materials bought for use in the production process.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the quantity expected, multiplied by the standard cost per unit.