Which of the Following Statements Is True

question 24

Multiple Choice

Which of the following statements is true?

• A)Offensive strategic market plans require investment for growth,which limits long-run profit performance,but does not limit sales revenue.
• B)Defensive strategic market plans promote short-run profit performance but are not that effective in growing sales revenue.
• C)In the long run,all market strategy will shift from an offensive strategic market plan to a growth-oriented plan.
• D)Offensive strategic market plans are geared to deliver above-average performance in the areas of sales growth,share position,and improved short-run profits.
• E)Defensive strategic market plans are not geared towards the protection of market share.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for allocating labor costs to products.

Activity-Based Costing

A method in cost accounting that assigns costs to products and services based on the activities involved in their production or delivery.

Activity Rates

Rates used in activity-based costing to assign overhead costs to products or services, based on the activities that drive those costs.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate cost information.