According to the Text,the Extent to Which an IC Relies

question 105

Multiple Choice

According to the text,the extent to which an IC relies on subsidiary management to make decisions depends on all of the following except:

• A) whether the subsidiary managers have degrees in business.
• B) how well the executives know one another.
• C) IC management understanding host country conditions.
• D) the distance between the home country and the host country.

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Definitions:

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.

Customer Margin

The profit generated from a particular customer, calculated by subtracting the costs directly associated with serving them from the revenue they generate.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities and resources that contribute to their creation and delivery.

Activity Cost Pools

Groupings of individual costs based on the activities that drive them, used in activity-based costing to allocate costs more accurately.