Which Action Is a Cause for Erosion of a Small

question 47

Multiple Choice

Which action is a cause for erosion of a small firm's focus strategy?

• A)Consumer demand grows.
• B)New firms reconstruct the industry.
• C)Differences between segments grow larger.
• D)The focus strategy is imitated.

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Definitions:

Activity Rate

The predetermined overhead rate used in activity-based costing to assign overhead costs to products or services based on a specific activity.

Machine Setups

The process and associated costs of configuring machinery to produce a specific product or batch of products.

Activity Cost Pool

A compilation of all the costs related to a specific activity or process in cost accounting.

Overhead

The ongoing administrative and operational expenses of a business that are not directly attributable to specific business activities.