The Ownership and Control of Foreign Assets, Such as a Manufacturing

question 27

Multiple Choice

The ownership and control of foreign assets, such as a manufacturing plant, is called:

• A) a hedge.
• B) foreign direct investment.
• C) an option.
• D) derivatives.

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Definitions:

Single Product

A business or manufacturing approach where only one type of product is produced rather than multiple products.

Absorption Costing

An accounting method that includes all direct costs and overhead in the cost of a product.

Net Operating Income

The total profit of a company after operating expenses are subtracted, but before taxes and interest are deducted.

Variable Costing

An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and inventory valuation.