Apple Inccontracts with Companies in Taiwan to Make Inputs Such as as the Chips

question 18

Multiple Choice

Apple Inc.contracts with companies in Taiwan to make inputs such as the chips, batteries, and LCD displays that power its digital devices at lower costs.This strategy is an example of

• A)global exporting.
• B)global franchising.
• C)global importing.
• D)global networking.
• E)global outsourcing.

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Definitions:

Net Operating Income

The profit generated from a company's normal core business operations, excluding deductions of interest and taxes.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.