The Local Communities in Which an Organization Operates Are Seldom

question 65

True/False

The local communities in which an organization operates are seldom considered as stakeholders of the organization.

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Definitions:

Discontinuance

The action of stopping the production or offering of a product or service, often due to strategic business decisions or market conditions.

Total Cost Concept

A concept used in applying the cost-plus approach to product pricing in which all the costs of manufacturing the product plus the selling and administrative expenses are included in the cost amount to which the markup is added.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead costs.

Administrative Expenses

Costs associated with the general management and administration of a business, such as salaries of executive personnel, legal and accounting fees.