In the Area of Global Organizational Design, the Major Firm-Specific

question 54

Multiple Choice

In the area of global organizational design, the major firm-specific factors include the following EXCEPT:

• A) local customers.
• B) strategic importance of international business.
• C) product diversity.
• D) company heritage.
• E) quality of local managerial skills.

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Definitions:

Direct Costs

Costs that can be directly traced to producing specific goods or services, such as direct labor and direct materials.

Direct Manufacturing Cost

Expenses directly tied to the production of specific goods, including materials and labor.

Relevant Range

The range of activity within which the assumptions about fixed costs and variable unit costs are valid for purposes of budgeting and decision-making.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.