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The Samsung Group sells several different product lines around the world through home appliance and electronics stores. Samsung appliances and electronics have been historically made in Korea, where the company is headquartered. Recently, Samsung has been investigating the possibility of buying land and building a production plant in Tennessee, in the United States. Samsung is now operating as a(an) ______; however, if the plant is built in Tennessee, it will be operating as a(an) ______.
Profit
The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.
Loss
The negative result from operations or other transactions when costs and expenses exceed revenues.
Unit Product Cost
The total cost (including materials, labor, and overhead) to produce a single unit of product.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.
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