If the Components in an Organization's Environment Exhibit Minimal Change

question 26

Multiple Choice

If the components in an organization's environment exhibit minimal change, such an environment is said to be ________.

• A) volatile
• B) dynamic
• C) stable
• D) simple

Grasp the significance of activity levels in the management of costs and the preparation of flexible budgets.

Interpret the implications of variances on material cost and efficiency.

Recognize the importance of standards in budgeting and variance analysis.

Understand how the measurement of efficiency varies with actual and standard costs in manufacturing overhead.

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Definitions:

Capital Account

It reflects the net change in assets and liabilities from transactions in foreign investments and loans, indicating a country's financial position with the rest of the world.

Financial Account

A component of a country’s balance of payments that records transactions of foreign investment and domestic investment abroad, reflecting changes in ownership of international assets.

Financial Account

A component of a country's balance of payments that records transactions involving financial assets and liabilities between residents and non-residents over a period.

Capital Account

A national account that shows the net change in asset ownership for a nation, including assets from financial and physical capital.