Of the Following, Which Would NOT Be a Significant Decision-Making

question 46

Multiple Choice

Of the following, which would NOT be a significant decision-making factor in a multinational firm's repositioning decision-making?

• A)the subsidiary's tax environment (high or low)
• B)the stability of the local currency
• C)the ability to move capital in and out of the subsidiary's country
• D)All of the above are significant factors.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of output produced.

Fixed Costs

Overheads that are unaffected by the quantity of output or sales, for example, tenancy costs, wages for staff, and indemnity expenses.

Contribution Format

A type of income statement presentation that separates fixed and variable costs, allowing for an easier assessment of how changes in volume affect profitability.

Contribution Format

A way of presenting income statements where variable costs are deducted from sales to find the contribution margin, then fixed costs are deducted to find net operating income.