Multinational Organizations Can Shop from Country to Country and Cut

question 120

Multiple Choice

Multinational organizations can shop from country to country and cut costs through

• A) higher taxes and tariffs.
• B) higher wage scales.
• C) higher indirect costs.
• D) more stringent regulations.
• E) lower wages, lower indirect costs, and lower taxes and tariffs.

---

Definitions:

Standard Hours Allowed

The number of hours that should have been worked for the actual level of output.

Overhead Costs Applied

Refers to indirect costs allocated to a cost object (like a project, product, or department) using a predetermined rate.

Overhead Volume Variance

A measure used in management accounting to analyze the difference between budgeted and actual overhead costs, attributable to variations in the level of production or operation.

Fixed Overhead Costs

Refer to the recurring, static expenses associated with operating a business that do not fluctuate with production levels or sales volumes.