An MNC's Size, Its Access to International Capital Markets, and International

question 29

True/False

An MNC's size, its access to international capital markets, and international diversification are unfavorable to an MNC's cost of capital.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.

Standard Volume

The amount of volume the plant would have generated if each unit of product manufactured used precisely the standard unit of volume allowed.

Budgeted Volume

The amount of production expected to occur during the year, usually stated in terms of a common input measure such as direct labor hours. Budgeted volume can be estimated as expected volume for next year or normal volume over the long run.

Actual Output

The tangible products or results produced by a company's operations or activities.