KayLeaf Inc

question 19

Multiple Choice

KayLeaf Inc.wants to set up a unit in China.To facilitate this, it sends its manager to China to gather information.Which of the following is most likely to be a suggestion from its manager?

• A)Use a hierarchical pay structure as there is high power distance in China.
• B)Use individual spot awards rather than stock options in the pay mix as the people in China have a long-term orientation.
• C)Use incentives linked to individual performance as China has a collectivistic culture.
• D)Have a rigid structure as the people in China have the highest level of uncertainty avoidance.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Raw And In Process

Materials that are either in their natural state and used in the manufacturing of products or materials that are partially processed but not yet completed.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

External Failure Costs

Costs associated with defects that are found after the product reaches the customer, including returns, repairs, and lost sales.