When a Company Faces Strong Pressures for Reducing Costs and Limited

question 65

Multiple Choice

When a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets, it should tend to use a:

• A) global strategy.
• B) multidomestic strategy.
• C) transnational strategy.
• D) differentiation strategy.
• E) home replication strategy.

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Definitions:

Units Produced

The total number of finished items or products created by a production process or manufacturing operation.

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs that management could control.

Standard Factory Overhead Rate

A rate used to allocate factory overhead costs to products based on expected factory activity.

Machine Hour

Refers to the total number of hours a piece of machinery or equipment is actually used in production, often used in allocating manufacturing costs based on machine hours.