LDCs Have Greater ______ Risk but Offer the Higher Probability

question 29

Multiple Choice

LDCs have greater ______ risk but offer the higher probability of diversification benefits.

• A)economic
• B)translation
• C)political
• D)operating

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Definitions:

Direct Materials

The raw materials that can be directly attributed to the production of a product and are a part of the finished product.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) cost based on the actual level of activity.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.

Labor Rate Variance

The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.