MNCs Can Improve Their Internal Control Process by All of the Following

question 57

Multiple Choice

MNCs can improve their internal control process by all of the following, except:

• A) establishing a centralized database of information.
• B) ensuring that all data are reported consistently among subsidiaries.
• C) ensuring that the MNC always borrows from countries where interest rates are lowest.
• D) using a system that checks internal data for unusual discrepancies.

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Definitions:

Cost-plus Pricing

A pricing strategy where a fixed percentage or specified amount is added to the production cost to determine the sell price of a product or service.

Return on Investment

A profitability metric calculated as the net gain from an investment relative to its initial cost, used to measure the efficiency or profitability of an investment.

Selling Price

The sum a purchaser spends to acquire a good or service from a vendor.

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.