If the External Environment of an Organization Is Stable and If

question 90

Multiple Choice

If the external environment of an organization is stable and if uncertainly is , then _ coordination among workers is needed to obtain resources, and managers can bring formality to the design of the organizational structure.

• A)low; less; more
• B)high; less; less
• C)high; less; more
• D)low; more; more
• E)All of these choices are incorrect.

Understand and classify costs related to the production environment and how they impact financial statements.

Analyze supply and demand dynamics to make pricing and production decisions.

Calculate the financial implications of accepting or rejecting special orders, including seasonal fluctuations and opportunity costs.

Understand the concept of opportunity costs and how it influences financial decision-making.

---

Definitions:

Variable Costs

Expenses that vary in relation to the amount of production or business activity.

Fixed Costs

Costs that do not change with the level of output produced, such as rent and salaries.

Break-Even Point

The financial analysis term where total costs and total revenues are equal, resulting in no net loss or gain for the business.

Contribution Margin

Contribution margin is the amount remaining from sales revenue after variable expenses are deducted, showing how much contributes to covering fixed costs and profit.