What Are the Three Means to View Business Strategy Developed

question 29

Multiple Choice

What are the three means to view business strategy developed by Michael Porter?

• A)High cost, unsuitable, and focus
• B)Low cost, unsuitable, and focus
• C)High cost, differentiation, and focus
• D)Low cost, differentiation, and focus

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Definitions:

Manufacturing Overhead

Manufacturing overhead encompasses all costs of manufacturing beyond direct materials and direct labor, including expenses like factory equipment depreciation and quality control.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to production activities based on a certain base, such as direct labor hours or machine hours.

Job Cost

The total cost associated with creating a specific product or completing a specific job, including materials, labor, and overhead.

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs and activity levels.