The Current Technology Environment

question 227

Multiple Choice

The current technology environment

• A) is not as important as it was fifteen years ago.
• B) does not affect manufacturing firms.
• C) changes the way business firms communicate with customers.
• D) doesn't change as often as it did fifteen years ago.
• E) is not a concern for most firms that do business only in the United States.

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Definitions:

Absorption Costing

A financial recording technique that incorporates every manufacturing expense, such as direct materials, direct labor, and all overhead costs (variable and fixed), into the product's cost.

Net Operating Income

The profit a company generates from its core business operations, excluding deductions of interest and tax.

Absorption Costing

An approach in accounting that integrates all costs associated with manufacturing, including direct materials, direct labor, and both variable and fixed overhead, into the product’s price.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest charges, indicating the profitability of its core business activities.