________ Refers to Reducing the Business Portfolio by Abandoning Products

question 73

Multiple Choice

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.

• A) Market segmentation
• B) Vertical integration
• C) Product line extension
• D) Downsizing
• E) Diversification

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Definitions:

Absorption Costing

A bookkeeping strategy that includes the total manufacturing expenses - direct materials, direct labor, and all overhead costs, both variable and fixed - in determining the cost of a product.

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced.

Absorption Costing

A financial recording technique that incorporates every manufacturing expense, such as direct materials, direct labor, and all overhead costs (variable and fixed), into the product's cost.

Net Operating Income

The profit a company generates from its core business operations, excluding deductions of interest and tax.