Which of the Following Is Typically the Lowest Risk Approach

question 189

Multiple Choice

Which of the following is typically the lowest risk approach for moving into international markets?

• A) licensing
• B) exporting
• C) joint venturing
• D) direct investment
• E) management contracting

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard (expected) cost.

Standard Quantity Of Hours

The standard quantity of hours refers to the pre-determined amount of labor hours estimated to be necessary to produce a single unit of output.

Standard Cost Per Mip

The predetermined cost of manufacturing one unit of product, where Mip is typically a measure of output.

Direct Labour Efficiency Variance

A measure used in cost accounting to determine the difference between the labor time expected to produce goods and the actual labor time used.