PepsiCo Purchased KFC So That It Could Replace Coke Products

question 74

Multiple Choice

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This is an example of a ________ strategy.

• A)horizontal integration
• B)vertical integration
• C)low-cost
• D)global

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Definitions:

Square Feet

A unit of area measurement equal to a square that measures one foot on each side, commonly used in the United States.

Spending Variance

is the difference between the actual amount spent on materials, labor, or overhead and the budgeted amount for these items.

Fixed Cost

An expense that remains constant, irrespective of the volume of products or services manufactured or traded.

Variable Cost

Costs that vary directly with the level of production or output.