External Threats May Pose Various Degrees of Adversity Upon the Company

question 93

Multiple Choice

External threats may pose various degrees of adversity upon the company and can surface from many sources and examples, except for

• A)the advent of cheaper or better technologies.
• B)the entry of lower-cost foreign competitors and restrictive foreign trade policies.
• C)new burdensome regulations.
• D)higher overall unit costs relative to those of key competitors.
• E)rising prices on key inputs (such as energy costs).

---

Definitions:

High-low Method

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

Utility Costs

The expenses associated with using utilities such as water, electricity, and gas in a business or household.

Machine-hours

A unit of measure that indicates the amount of time a machine has been actively operating in the production process.

Least-squares Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by minimizing the sum of the squares of the differences between observed and predicted values.