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If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be buying assets abroad.
Net Operating Income
A financial metric that calculates a company's profitability by subtracting operating expenses from gross profit.
Direct Labor Cost
The total cost of labor directly involved in the production of goods, including wages and benefits for the workers on the production line.
Variable Costing
An accounting technique that considers only variable costs - those that vary with production levels - when calculating the cost of producing goods.
Net Operating Income
The earnings a business retains following the subtraction of operational costs, not including interest and taxes.
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