Which of the Following Is Not True About the Global

question 130

Multiple Choice

Which of the following is not true about the global standardization of a firm's manufacturing operations?

• A) Worldwide uniformity or standardization in manufacturing methods increases headquarters' effectiveness in keeping the production specifications current.
• B) If all plants worldwide have the same equipment, notice of a change in specifications can be given with one indiscriminate notification.
• C) Greater profits may be obtained by organizing all of its companies' production facilities into one logistical supply system.
• D) Standardization of machinery guarantee that parts will be interchangeable, regardless of where they are produced.

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Definitions:

Overhead Costing Systems

Methodologies used to allocate indirect costs (overhead) to products or services, which may vary depending on the costing approach (e.g., traditional costing or activity-based costing).

Overhead Allocation Base

A metric used to assign indirect costs to cost objects, often based on time, labor, or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied to all production units irrespective of the department in which they were produced.