A Foreign Subsidiary Is a Local Operation That Is Completely

question 128

True/False

A foreign subsidiary is a local operation that is completely owned and controlled by a foreign firm.

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Definitions:

Mixed Cost

A cost that contains both fixed and variable components and changes in total with the level of activity, but not proportionately.

Variable Cost

Expenses that change in proportion to the activity of a business, such as production volume or units sold.

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments or employee wages.

Variable Costs

Costs that change in proportion to the good or service that a business produces.