Which of the Following Is an Example of an Internal

question 37

Multiple Choice

Which of the following is an example of an internal proposal?

• A) An employee's email persuading his superiors to choose his team over an external agency for a particular project
• B) A vendor's email proposing to handle the internal communication structure of a company's new branch
• C) An email from the head of one company to another proposing to share resources on similar projects
• D) An email from a department manager to an auditing firm scheduling an internal audit for her department
• E) An email from the founder of an organization to the general public denying a charge of defrauding investors

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Definitions:

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and manufacturing overhead.

Common Fixed Expenses

Expenses that remain constant in total amount and are not affected by changes in business activity level, shared across multiple business segments or products.

Business Segments

Parts of a company that can be separately identified by products provided or by geographic markets, allowing for analysis of the different areas of a business.

Variable Costing

An accounting approach that includes only variable production costs - direct materials, direct labor, and variable manufacturing overhead - in product costs, excluding fixed overhead.