A Situation Analysis Refers to

question 92

Multiple Choice

A situation analysis refers to

• A) taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.
• B) an appraisal of an organization's cash flow and financial ratios to access its health and the potential for new investment.
• C) the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
• D) a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were separate investments.
• E) the process where a firm searches for growth opportunities from among current and new markets as well as current and new products.

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Definitions:

Value-Added Costs

Expenses incurred by a company that increase the worth of a product or service to a customer, thereby enhancing the product's or service's selling price.

Non-Value-Added Costs

Expenses that do not contribute to adding value or increasing the worth of a product or service from a customer's perspective.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished goods.

Machine Hours

A measure of production output or activity based on the number of hours machinery is in operation, used in cost accounting to allocate expenses to products.