To Best Reduce Exposure to a Host Government Takeover, a Subsidiary

question 7

Multiple Choice

To best reduce exposure to a host government takeover, a subsidiary could:

• A) use a long-run profit perspective for business in that country.
• B) hire people from its own country (where the parent is located).
• C) attempt to obtain supplies from its parent for which substitutes are not available.
• D) borrow funds from its parent rather than from the host country's creditors.

---

Definitions:

Weighted-Average Method

An inventory costing method that assigns the average cost of goods available for sale during the period to sold and ending inventory.

Process Costing

A costing method used where similar products are produced in a continuous process, allocating costs based on the average cost of production.

Mixing Department

A section within a manufacturing facility where ingredients or components are combined to produce a final product.

Job-Order Costing

Job-order costing tracks production costs individually for each job or project, making it suitable for customized orders or differentiated products.