The Level of an Organization's External Environment That Contains Components

question 64

Multiple Choice

The level of an organization's external environment that contains components having broad long-term implications for managing the organization is the ________.

• A)general environment
• B)financial environment
• C)demographic environment
• D)internal environment
• E)operating environment

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Definitions:

Markup

The amount added to the cost of a product to cover overhead and profit, expressed as a percentage of the cost.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, from maintenance to quality control.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead costs to products, calculated before the fiscal period begins based on estimated costs and activity levels.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are run in the manufacturing process.