In Order to Avoid Congressional Action in the United States

question 15

Multiple Choice

In order to avoid congressional action in the United States, in the
Early 1980s the Japanese resorted to:

• A)infant industry protection.
• B)dumping of automobiles.
• C)voluntary export restraint (VER).
• D)price discrimination.

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Definitions:

Net Operating Income

The income a company makes from its main business activities before subtracting any costs for interest and taxes.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant irrespective of the level of production, such as salaries of supervisors and rent for the factory building.

Variable Costing

A costing method that includes only variable production costs (costs that vary with output) in the cost of goods sold and excludes fixed overhead costs.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and variable manufacturing overhead) in product costs, excluding fixed overhead.