Division Y Sells a Food Product Internally to Division Z

question 87

Multiple Choice

Division Y sells a food product internally to Division Z.Division Z uses the food product to produce vegetarian burgers that sell for $5 per pound.Division Y incurs costs of $0.75 per pound to produce the food product and sells the food product to Division Z for $1.00 per pound.Division Z incurs additional costs of $2.50 per pound to produce the final product of vegetarian burgers.Division Z can purchase the food product needed from outside suppliers for $0.75 per pound,but does not do so.Which formula should be used to determine the company's operating income?

• A)$5.00 - $0.75 - $1.00 - $0.75 - $2.50 = 0
• B)$5.00 - $0.75 - $1.00 - $2.50 = $0.75
• C)$5.00 - $0.75 - $2.50 = $1.75
• D)$5.00 - $0.75 - $1.00 + $0.75 = $4.00

Understand different global strategies (meganational, multidomestic, transnational) adopted by companies and their implications on human capital investment.

Differentiate between various types of human capital (local, subsidiary, corporate, international) and their specificity.

Identify the role of critical behaviors and key performance indicators (KPIs) in achieving strategic objectives.

Recognize the importance of local human capital in multinational and multidomestic strategies.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced when holding two or more conflicting cognitions (ideas, beliefs, values, emotional reactions).

Peripheral Route Persuasion

A mode of persuasion wherein individuals are influenced by superficial cues rather than message content.

Central Route Persuasion

A method of persuasion that involves deeply processing the content of a message, focusing on the arguments and evidence.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or aspects unrelated to the argument or content, such as the speaker's attractiveness or charisma.