Which of the Following Is True of Environmental Uncertainty

question 136

Multiple Choice

Which of the following is true of environmental uncertainty?

• A) The less uncertain the environment, the harder it is to analyze environmental conditions and predict the future state of affairs.
• B) The least challenging situation is an environment that is both complex and dynamic.
• C) High-uncertainty environments require less flexibility in organizational designs and work practices as different circumstances arise every now and then.
• D) High-uncertainty environments require people to make decisions gradually since new circumstances arise constantly.
• E) The uncertainty of an organization can be analyzed using degree of complexity and rate of change.

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Definitions:

Net Income

The company's net income following the deduction of all expenditures and taxes from its total revenue.

Variable Selling Costs

Costs that vary directly with the volume of units sold, such as commissions and shipping expenses.

Variable Production Costs

Expenditures that change in direct correlation with production volumes, like direct labor and raw materials used.

Absorption Costing

An accounting method that includes all direct costs and overhead costs related to the production of a specific product.