Which of the Following Is an Advantage of a Geocentric

question 3

Multiple Choice

Which of the following is an advantage of a geocentric approach to staffing for international businesses?

• A) It requires minimal documentation.
• B) It is inexpensive to implement.
• C) It helps build a strong culture and informal management networks.
• D) It helps transfer core competencies to foreign operations.
• E) It requires less management personnel to implement this staffing policy.

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Definitions:

Cost Drivers

Factors that cause the cost of a product or service to change.

Single Plantwide Overhead Rate

A method in cost accounting where a single rate is used to allocate all of a plant's manufacturing overhead costs to its products.

Cost Driver

A factor that causes variations in the cost of an activity or process, influencing the financial performance of a company.

Joint Costs

Costs incurred in producing products up to a split-off point, where multiple products are generated from the same process and the costs cannot be separately identified for each product.