Which of the Following Is, Perhaps, the Most Significant Environmental

question 4

Multiple Choice

Which of the following is, perhaps, the most significant environmental factor affecting the international market for industrial goods and services?

• A) Foreign exchange
• B) Political conditions
• C) The degree of industrialization
• D) The level of competition
• E) Inflation

---

Definitions:

Variable Costing

An accounting method that only considers variable costs (costs that change with production levels) in product pricing and decision making, excluding fixed costs.

Absorption Costing

is an accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Fixed Manufacturing Overhead

Costs related to manufacturing that do not vary with the level of production, such as rent, salaries, and utility costs for the factory.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) as part of the cost base of a product.