The Decision to Expand or Diversify Operations Is a Strategy-Formulation

question 53

True/False

The decision to expand or diversify operations is a strategy-formulation issue.

Identify and understand the application of conditioning principles in real-life scenarios.

Understand the concepts of shaping and higher-order conditioning.

Understand the role and importance of business plans for entrepreneurs.

Recognize the importance of financial planning and awareness of funding sources for small businesses.

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Definitions:

Direct Labour Hours

Direct labour hours refer to the amount of time spent by workers directly involved in the manufacturing process of a product or service.

Cost Driver

A factor that causes or relates to a change in the cost of an activity or product.

Activity-Based Budgeting (ABB)

A budgeting approach that determines the cost of activities necessary for producing a product or service, aiming to improve cost efficiency.

Activity-Based Costing (ABC)

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