Tiny Timbers Tree Farm Sells a Variety of Trees for Different

question 49

Multiple Choice

Tiny Timbers Tree Farm sells a variety of trees for different customers. Recently, the company received notice from the Ministry of Natural Resources that a shortage of fir trees is affecting a rare moth population. The government has ruled that tree farms must refrain from cultivating fir trees for business use until further notice. Which element of Tiny Timbers' environment is most directly affected by this ruling?

• A) the economic environment
• B) the global environment
• C) the social environment
• D) the technological environment

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Definitions:

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (or standard) cost, used in budgeting and cost management.

Variable Overhead

The overhead costs that fluctuate with the level of production or business activity, such as utilities or materials consumed in production.

Direct Materials Purchases Variance

The difference between the actual costs of direct materials purchased and the expected (or standard) costs, impacting the budget and potentially financial results.

Variable Overhead Efficiency Variance

A measure used in management accounting to assess the efficiency of variable production overhead based on the actual time taken to produce goods versus the expected time.