Why Would a U

question 99

Multiple Choice

Why would a U.S.bank open a foreign branch bank?

• A)Because this form of bank organization can allow a U.S.bank to provide a fuller range of services for its MNC customers than it can through a representative office.
• B)To avoid U.S.banking regulation on transactions routed through that foreign country.
• C)Because this form of organization allows the bank to service MNC clients at low cost and without the need of having bank personnel located in the country.
• D)Because this form of bank organization can allow a U.S.bank to provide a fuller range of services for its MNC customers than it can through a representative office,and to avoid U.S.banking regulation on transactions routed through that foreign country.

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Definitions:

Standard Cost

An estimated or pre-determined cost of manufacturing a product, which is used for budgeting and performance evaluation.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to variations in production volume.

Fixed Overhead Budget Variance

This variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs. It helps identify discrepancies in planned versus actual spending.

Direct Labor-hours

A measure of the labor time directly involved in the production of goods, used as a base for allocating overhead in some costing systems.