When Cost Pressures Are Low and Pressures for Local Responsiveness

question 44

Multiple Choice

When cost pressures are low and pressures for local responsiveness are low,a(n) _____________ strategy is the most appropriate.

• A) multidomestic
• B) transnational
• C) global
• D) international
• E) multinational

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Definitions:

Departmental Overhead Rates

Refers to the allocation of indirect costs to specific departments within a company, which is used for cost control and pricing decisions.

Machine Hours

A measure of production activity; the total hours that machines are operating in a manufacturing process.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process of a product.

Departmental Overhead Rates

The overhead costs charged to specific departments based on their respective activities or consumption of resources.