Economic Development Has Two Consequences for MNEs

question 21

Multiple Choice

Economic development has two consequences for MNEs.They are ______________.

• A) Rising wages and trustworthy relationships with suppliers
• B) High living standards and low crime rates
• C) Higher production rates and the development of green technology
• D) Rising wages and high living standards

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Definitions:

Equipment Depreciation

The process of allocating the cost of tangible assets over its useful life, representing how much of the asset's value has been used up.

Supervisory Expense

Supervisory expense relates to the costs associated with the oversight and management of employees or production processes, often part of overhead costs.

Activity Rate

The predetermined rate used to allocate overhead costs to cost objects based on activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce each product or service, aiming for more precise cost allocation.