When an Organization Attempts to Combine with Other Organizations in Different

question 109

Multiple Choice

When an organization attempts to combine with other organizations in different and disassociated industries, the strategy is known as a(n) ________strategy.

• A) unrelated diversification
• B) vertical integration
• C) horizontal integration
• D) stability

---

Definitions:

Cost Formulas

Equations used to calculate costs, often incorporating fixed and variable components.

Static Planning Budget

A budget based on the level of expected output before the period begins, and it does not change in response to actual activity levels.

Variable Costs

Expenses that change in proportion to the level of production or sales activities, such as raw materials and direct labor costs.

Actual Costs

The real costs incurred in the production of goods or the provision of services.