A Polycentric Staffing Policy Is Usually More Expensive Than Sending

question 8

True/False

A polycentric staffing policy is usually more expensive than sending expatriates abroad.

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Definitions:

Estimated Activity Base

A projected measure of activity, such as labor hours or machine hours, used for allocating overhead costs in budgeting and costing.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, used to allocate estimated overhead costs to products or services.

Direct Labor Dollars

The total cost of labor that can be directly attributed to the production of goods or services.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities and maintenance, not directly tied to the production of goods.