The Reason Given by the Text for the United States

question 64

Multiple Choice

The reason given by the text for the United States' failure to disarm after the Korean War was

• A) the possibility of renewed fighting in Korea.
• B) our containment policy toward the Soviet Union.
• C) fear of losing the cold war.
• D) public opinion in favor of our being the world's policeman.
• E) All of the above are True.

---

Definitions:

Variable Costing Income

An accounting method that considers only variable costs—costs that vary with production—when determining cost of goods sold and, ultimately, income.

Fixed Overhead Cost

Indirect fixed costs associated with the production process, such as rent and insurance, that do not vary with the level of output.

Contribution Margin Report

A financial report detailing the variable costs deducted from net sales to determine the contribution margin, used in managerial accounting to make decisions.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.