Both Internal and External Environments Impact and Effect Decision Making

question 13

True/False

Both internal and external environments impact and effect decision making.

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Definitions:

Net Operating Income

The profit a company earns from its normal business operations, excluding non-operating income and expenses.

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, considering only the revenues and costs directly attributable to the segment.

Absorption Costing

A financial recording technique that incorporates all expenses related to production, such as direct materials, direct labor, and variable as well as fixed manufacturing overhead costs, into the product's cost.