Which of the Following Types of International Corporate Control Transaction

question 32

Multiple Choice

Which of the following types of international corporate control transaction is probably the most difficult to value by an MNC?

• A) international acquisition.
• B) newly privatized foreign business.
• C) international alliance.
• D) international divestiture.

---

Definitions:

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Fabrication Activity Cost Pool

A grouping of all the costs associated with the fabrication activities in a manufacturing process, used in activity-based costing.

Idle Capacity

Idle capacity refers to the unused portion of the total capacity of a manufacturing unit which could otherwise be used to produce goods and generate revenue.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product costing.