When People Invest at Home, It Is Called _____, and When

question 136

Multiple Choice

When people invest at home, it is called _____, and when they invest abroad it is called _______.

• A) I; NCO
• B) I; NX
• C) S; I
• D) S; NCO

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Definitions:

Period Costs

Expenses directly tied to non-manufacturing activities such as selling, administration, and general business operations, recognized in the income statement when incurred.

General Costs

General costs are indirect expenses related to the overall operations of a company that cannot be directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.