Corporate Strategy Determines the Means for Utilizing Resources in the Functional

question 8

True/False

Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the organization's goals.

---

Definitions:

Cost Behavior

The way in which costs change in relation to changes in a firm’s level of activity or volume of production.

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Variable Costs

Costs that vary directly with the level of production or service activity, such as materials and labor.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.