________ and ________ Would Be Uncontrollable Factors That a Firm

question 103

Multiple Choice

________ and ________ would be uncontrollable factors that a firm would need to consider when evaluating the return on investment of an international division.

• A)Manager's experience; currency stability
• B)Manager's compensation; political climate
• C)Required rate of return; legal requirements
• D)Custom duties; cultural environment
• E)Cultural requirements; required rate of return

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.

Malfunctioning Equipment

Equipment that is not operating correctly or as expected, often leading to operational inefficiencies or safety concerns.

Spoilage

Wasted or defective materials during the production process that cannot be repaired or sold.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating how much the actual labor rate deviates from the expected standard.