A Multinational Corporation's Choice of a Specific Locale Is Affected

question 67

Multiple Choice

A multinational corporation's choice of a specific locale is affected by all of the following factors except:

• A) desirability of the location for employees coming in from the outside.
• B) the structure of the organization.
• C) proximity to competitors.
• D) the nature of the workforce.

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Definitions:

Predetermined Overhead Rate

It is a rate used to allocate estimated overhead costs to cost objects based on a chosen activity base, calculated before the period begins.

Machine-Hours

A measure of the amount of time a machine is used during the production process.

Variable Manufacturing Overhead

Costs that vary directly with the level of production output and are a part of the total manufacturing overhead.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as salaries of supervisory staff and rent.