International Accounting: A user perspective by Shahrokh M. Saudagaran 1. For mu

Question

International Accounting: A user perspective by Shahrokh M. Saudagaran

1. For multinational corporations with a number of subsidiaries, the following factor or factors can adversely impact the use of comparability in a performance evaluation system:
a. inflation
b. political turmoil
c. labor conditions
d. all of the above


2. Studies that have compared budgeting and performance evaluation practices in Japan and the United States have found:
a. more time is spent in the United States preparing budgets
b. compensation and promotion of U.S. managers was more likely to be impacted by their budget performance than was those of Japanese manager.
c. both a. and b.
d. none of the above

3. In choosing the appropriate currency to measure a foreign subsidiary

Explanation / Answer

1. d. all of the above 2 c. both a. and b. 3.a. which country has the strongest currency 4. c. they both are standardized in terms of amount and delivery dates 5. a. minimizing taxes 6.b. maximizes consolidated earnings 7.c. the Resale Price Method (RPM) 8.c. both a. and b. 9. d. none of the above 10. a. the integrated approach

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