Which of the Following Is a Reason for the Tremendous

question 2

Multiple Choice

Which of the following is a reason for the tremendous increase in the flow of foreign direct investment from 1990 to 2011?

• A) The relaxation of transfer pricing regulations
• B) The liberalization of investment laws in many countries
• C) The similarities in tax rates and tax laws across the globe
• D) The universal application of U.S. GAAP accounting standards

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis, an accounting tool used to determine how changes in costs and volume affect a company's operating income and net income.

Variable

In finance and economics, a variable represents a quantity or factor that can change and influence outcomes, such as price, interest rates, or investments.

Fixed

Pertaining to assets, costs, or charges that do not vary with the level of production or sales in the short term.

Cost Behavior Analysis

The study of how specific costs change in relation to changes in an organization's activity level.