An MNC Typically Receives More Than 50 Percent of Its

question 29

True/False

An MNC typically receives more than 50 percent of its total sales revenue from operations outside the parent's home country.

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Definitions:

Total Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes toward covering fixed costs and generating profit.

Pretax Income

The income a company generates before income taxes are deducted, also known as earnings before tax (EBT).

Variable Costing

An accounting method that only allocates variable costs to production, treating fixed costs as period costs that are charged to expense as they are incurred.

Fixed Overhead Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, and must be paid regardless of the business activity level.