Global Trading Just Learned That the Government of One Country

question 72

Multiple Choice

Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry.The government's actions are an example of ________.

• A)confiscation
• B)globalization
• C)expropriation
• D)nationalization

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Definitions:

Inventories

Items such as products, materials, and supplies held by a company for the purpose of resale or production.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and variable overhead) in the cost of goods sold, while fixed overhead costs are expensed in the period incurred.

Fixed Costs

Costs that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Costs

Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued.