Which of the Following Statements Is True Regarding an Export

question 90

Multiple Choice

Which of the following statements is true regarding an export management company (EMC) ?

• A) It acts as a middleman for firms with relatively large international sales volume.
• B) It operates under its own name while providing services to another firm.
• C) It does not have direct responsibility to the parent firm.
• D) It acts as a middleman for firms willing to involve their own personnel in international functions.
• E) It calls for minimum investment from the parent firm to get into international markets.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.