The Microenvironment Consists of Larger Societal Forces That Affect a Company

question 14

True/False

The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

---

Definitions:

Cost Formula Equation

An equation used to predict the total cost of production, combining both fixed and variable costs.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in the activity level but not proportionately.

High-low Method

A technique used in managerial accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.