What Term Is Used for a Situation Where a Company

question 35

Multiple Choice

What term is used for a situation where a company has diversified beyond its current products and markets, but within its existing capabilities?

• A) Related diversification
• B) Market penetration
• C) Stretched capability
• D) Synergy

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Definitions:

Variable Overhead Rate

A rate that fluctuates with changes in production levels or business activity, applied to allocate variable overhead costs to products or services.

Cash Disbursements

The outflow of cash for expenses, investment purchases and other payments.

Manufacturing Overhead Budget

A financial plan that estimates the expected indirect costs of producing goods or services, excluding direct materials and direct labor.

Direct Labor-Hour

A measure of the amount of time spent by workers who are directly involved in the production process of creating goods or services.