In the Context of Working Capital Management in MNCs,credit Policy

question 25

Multiple Choice

In the context of working capital management in MNCs,credit policy involves consideration of:

• A)optimizing cash balances across countries where the MNC operates.
• B)pricing and credit terms.
• C)currency risk and local market conditions.
• D)credit rating of customers and competition.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or service delivery, such as raw materials and direct labor.

Work in Process Inventory

Inventory of unfinished goods that are still in the process of production, accounting for materials, labor, and overhead.

Direct Labour Costs

Direct labour costs are the wages and other associated expenses for employees who are directly involved in the production of goods or services.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, such as utilities, maintenance, and factory equipment depreciation.