Question: A recent annual report for McDonald's reports the following operating income for its United States and Europe geographic segments: Required 1. Is operating income growing

A recent annual report for McDonald's reports the following operating income for its United States and Europe geographic segments:

Required
1. Is operating income growing faster in the United States or in the Europe segment? Explain.
2. Is the difference in operating income growth due to the use of different costing methods (absorption or variable costing) in the two geographic segments? Explain.

In $ millions 2013 2012 United States . . . Europe $3,779 3,371 3,196

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