_____ Includes All Elements Existing Outside the Boundary of the Organization

question 4

Multiple Choice

_____ includes all elements existing outside the boundary of the organization that have the potential to affect the organization.

• A) Organizational environment
• B) Internal environment
• C) Task environment
• D) General environment
• E) Technological environment

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Definitions:

Variable Costing

A pricing approach that incorporates only variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the costs of products.

Total Period Cost

The sum total of all expenses incurred by a business within a specific period, not directly tied to the production process.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Unit Product Cost

The total cost associated with producing a single unit of product, including direct materials, direct labor, and allocated overhead.