Which Statement Is an Example of a Global Trend

question 19

Multiple Choice

Which statement is an example of a global trend?

• A)The South African Reserve Bank announces that it will decrease the interest rate it charges banks.
• B)Government passes legislation that increases the tax rates on companies.
• C)A new computer chip is announced that will allow for miniaturisation of many electronic devices.
• D)The EU declares an increase in tariffs on all agricultural goods.

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Definitions:

Administrative Costs

Administrative costs are expenses related to the general operations of a business, including salaries of office staff, utilities, and rent.

Absorption Approach

A costing method in which all of the manufacturing costs, including both fixed and variable manufacturing costs, are absorbed into the cost of a unit of product.

Joint Products

Two or more products that are generated from a common input or production process.

Common Input

A shared resource or factor used in the production process of two or more goods or services.