Which of the Following Statements Concerning the Complexity of the Manager's

question 90

Multiple Choice

Which of the following statements concerning the complexity of the manager's task in a multinational corporation is correct?

• A)The currency values of different countries in which a multinational corporation operates often experience fluctuations.
• B)Cash flows in the various parts of a multinational corporate system are often denominated in the same currencies.
• C)All the countries in which a multinational corporation operates have uniform political and economic institutions.
• D)The management personnel of the subsidiaries of a multinational corporation are fluent in English and several other languages.
• E)No nation can place constraints on the transfer of corporate resources.

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Definitions:

Total Variable Overhead Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated for the output achieved.

Standard Costing System

An accounting method that applies estimated costs to product costs for the purposes of budgeting and inventory valuation.

Direct Labour-Hours

The total hours worked by employees directly involved in manufacturing a product.

Variable Manufacturing Overhead

Manufacturing costs that vary in total directly with changes in production volume, such as utility costs or raw material consumptions.