A recent annual report for McDonald's reports the following operating income for its United States and APMEA (Asia-Pacific, Middle East, and Africa) geographic segments:

In $ millions                             2011               2010                2009

United States . . . . . . . . . . . . $3,666 . . . . . $3,446 . . . . . . $3,232

APMEA. . . . . . . . . . . . . . . . . 1,526. . . . . . . 1,200. . . . . . . . . 989

Required

1. Is operating income growing faster in the United States or in the APMEA segment? Explain.

2. Is the difference in operating income growth due to the use of different costing methods (absorption or variable costing) in the U.S. and APMEA segments? Explain.