A Market Extension Merger Can Exist

question 149

Multiple Choice

A market extension merger can exist:

• A) if the geographic market is extended.
• B) if the product market is extended.
• C) if either the product market or the geographic market is extended.
• D) only if both the geographic market and the product market are extended in the merger.
• E) only if the product market is extended into a different geographic area.

---

Definitions:

Factory Overhead

All indirect costs associated with manufacturing that are not directly tied to a specific product, such as maintenance, utilities, and quality control.

Multiple Products

The practice of producing or selling more than one type of product by a single firm, often to diversify market reach and revenue sources.

Activity-based Costing

An approach to cost allocation where overhead and indirect costs are apportioned to corresponding products and services according to the activities they necessitate.

Indirect Labor

Labor costs not directly tied to the production of specific goods or services, such as maintenance and cleaning staff.