All of the Following Statements About the Environmental Forces That

question 96

Multiple Choice

All of the following statements about the environmental forces that have influenced Facebook are true except

• A)the Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites.
• B)technological advances in data storage, server speed, and software integration have made Facebook increasingly fast and convenient.
• C)its rivalry with Google, Twitter, and Snapchat; the ability of users to easily switch platforms; and the constant threat of new social networks targeted at specific interest groups encourage rapid expansion.
• D)the cost of wireless connectivity and smartphones rapidly declined and Internet access expanded, which increasingly made social networking affordable for more people.
• E)people increasingly look for new ways to communicate, obtain information, and offer opinions.

---

Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.

Capacity

The maximum level of output that a company can sustain to produce in a given period.

Allocation Base

A criterion or measure used for distributing overhead costs among various cost objects, such as departments or products.

Fixed

Expenses that do not change in total over a short period, regardless of the level of production or sales activity, such as rent, salaries, or insurance.