Which of These Operates in Truly Global Fashion, and the Entire

question 26

Multiple Choice

Which of these operates in truly global fashion, and the entire world is their marketplace?

• A) Multidomestic firms
• B) Domestic organizations
• C) Governmental agencies
• D) Global companies

---

Definitions:

Absorption Cost Approach

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

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Net Income

The company's net income following the deduction of all expenses and taxes from its total revenue.

Variable Costs

Expenses that fluctuate in proportion to the level of output or activity, such as raw materials and direct labor costs.