When Cost Pressures Are Low and the Pressures for Local

question 91

Multiple Choice

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

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

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Definitions:

Fixed Overhead

Denotes the regular, recurring costs associated with running a business that do not fluctuate with production volume, such as rent, salaries, and utilities.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost determination.