Sony Corporation Sources Goods and Services for Its Electronics Products

question 39

Multiple Choice

Sony Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of factors of production.This practice is made possible by the:

• A)globalization of production.
• B)localization of markets.
• C)focus on regulation.
• D)homogeneity of markets.

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Definitions:

Employment Taxes

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes.

Variable Overhead Efficiency Variance

A measure of the efficiency with which variable overhead resources are utilized, calculated by comparing the actual usage against the budgeted or standard usage.

Standard Price

A predetermined cost assigned to materials, labor, and overhead used in budgeting and variance analysis.

Direct Materials

Components that are directly associated with the creation of a product and form a crucial part of the completed item.