Which of the Following Ratios Is Used in the Calculation

question 16

Multiple Choice

Which of the following ratios is used in the calculation of the multinationality index (MNI) ?

• A) Foreign working capital to total working capital
• B) Foreign cash to total cash
• C) Foreign employment to total employment
• D) Foreign loans to total loans

---

Definitions:

High-low Method

The high-low method is a straightforward way to estimate the variable and fixed components of a cost by using the highest and lowest activity levels and the corresponding total costs.

Machine Hour

A unit of measurement that represents an hour of operation of a machine or equipment.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent and salaries.

High-low Method

A technique used in accounting and finance to estimate fixed and variable costs based on the highest and lowest levels of activity.