Nokia Has Established Production Operations in Foreign Countries to Sell

question 56

Multiple Choice

Nokia has established production operations in foreign countries to sell its phones in those regions. The production operations perform as separate entities without any local direct involvement. These production operations are _____ of Nokia.

• A) joint ventures
• B) acquisitions
• C) wholly owned subsidiaries
• D) mergers
• E) hostile takeovers

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Definitions:

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

Underapplied Overhead

Occurs when the allocated overhead costs are less than the actual overhead costs incurred.

Job Costing System

A cost accounting system that tracks the expenses of a specific job against its revenue to determine profitability.

Overapplied Overhead

This occurs when the allocated manufacturing overhead cost is more than the actual overhead costs incurred, leading to a variance.