The Practice of Foreign Companies Setting Up Design and Production

question 6

Multiple Choice

The practice of foreign companies setting up design and production facilities in the United States,creating U.S.jobs is:

• A) Outsourcing
• B) Insourcing
• C) Globalization
• D) Management prerogative

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Definitions:

Overhead Cost

Indirect expenses related to the general operation of a business, not directly tied to a specific product or service.

First Stage Allocations

The initial process of distributing overhead costs to various cost centers or departments in a company.

Order Filling

The process of completing a customer's order, including picking, packing, and shipping the product.

Activity Rate

A rate used in activity-based costing to assign costs to cost objects, based on the activities required to produce each object.