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Theodore and Janice Have Formed TJ Soft, an Entrepreneurial Venture

question 46

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Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers.Theodore has just gotten wind that engineers have developed a new computer system that works like the devices shown in the Steven Spielberg movie Minority Report in which users can control a sophisticated computer using their hands in midair.Janice sees this development as highly important to new games for TJ Soft.Which component of the external environment will affect TJ Soft the most in this situation?

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Definitions:

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Conversion Costs

The costs required to convert raw materials into finished products, which include labor costs and manufacturing overhead.

Direct Costs

Costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.

Uncontrollable

Refers to factors or costs that cannot be controlled or influenced by the management or operations of a business.

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