Which of the Following Is an Advantage of Using Local

question 35

Multiple Choice

Which of the following is an advantage of using local employees in international subsidiaries?

• A) Difficult decisions are often handled earlier by local employees than by expatriates.
• B) A local manager is better able to balance local demands with the firm's international priorities.
• C) Using a local employee ensures transfer of management practices from the home company to the subsidiary.
• D) Using local employees increases the community's acceptance of the company as a legitimate participant in the local economy.

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Definitions:

Actual Direct Labour Hours

The real number of labor hours spent on a production process as opposed to planned or estimated hours.

Manufacturing Overhead Cost

Indirect costs related to manufacturing that are not directly tied to a specific product, such as factory maintenance and utilities.

Normal Costing System

An accounting system that assigns costs to products based on the normal levels of materials, labor, and overhead.

Inventory Accounts

Accounts used to track the cost of goods a company has in stock during an accounting period, including raw materials, work in progress, and finished goods.