Which of the Following Approaches May Be Used by Multinational

question 2

Multiple Choice

Which of the following approaches may be used by multinational companies to deal with the problem of price escalation?

• A) Disintermediation
• B) Manufacture the product in the foreign country
• C) Backward innovation
• D) All of the above
• E) (a) and (b) only

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Definitions:

Standard Cost

A predetermined cost of manufacturing a single unit or a specified quantity of a particular product or service, used as a benchmark to measure performance.

Direct Material

Raw materials that are directly attributable to the product being manufactured and can be easily traced in the manufacturing process.

Output

In economic and production contexts, this refers to the total amount of goods or services produced by a company or economy.

Actual Cost

The true expenditure incurred for manufacturing, operations, or project activities.