Foreign Portfolio Investment

question 68

Multiple Choice

Foreign portfolio investment:

• A) can be withdrawn from a country very quickly.
• B) is very difficult to trace.
• C) is often invested in the assets that yield the highest returns.
• D) earnings often go untaxed by the home government.

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Definitions:

Traceable

Refers to costs or expenses directly associated with a specific department, product, or project, making it easy to assign them accurately.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific products or activities based on their consumption.

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.

Sunk Costs

These are costs that have already been incurred and cannot be recovered, thus should not affect future business decisions.