If Your Company Opens and Operates a Branch in a Foreign

question 158

True/False

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

---

Definitions:

Fixed Manufacturing Overhead

The sum of all the production costs that are not directly linked to the volume of production, such as salaries of managers and depreciation of equipment.

Absorption Costing

A method of costing that includes all manufacturing costs—both fixed and variable—in the cost of a product.

Break-Even

The financial point at which revenues exactly cover all costs, both fixed and variable, representing no profit or loss situation with different wording.

Sales Dollars

The total monetary value of sales within a specific time period.