If You Go into a Restaurant in Vienna, Austria, and Ask

question 245

Multiple Choice

If you go into a restaurant in Vienna, Austria, and ask for a Diet Coke, the waiter may have no idea what you are ordering. This is an example of which part of the external market environment?

• A) Political
• B) Cultural and social
• C) Legal
• D) Economic
• E) Competitive

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Definitions:

Total Product Cost

The complete cost of producing a product, including direct materials, direct labor, and both variable and fixed overhead.

Cost-Volume-Profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Absorption Costing

A method of accounting that incorporates all costs associated with manufacturing, such as direct materials, direct labor, and both variable and fixed overhead, into a product's price.

Internal Management

The process and practice of effectively running an organisation by its own executives and staff, focusing on policies, strategies, and resource allocation.