A Is a Company's Plan for How It Will Balance

question 78

Multiple Choice

A is a company's plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.

• A)SWOT analysis
• B)mission statement
• C)scorecard
• D)strategy
• E)tactic

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.

Capacity

The maximum level of output that a company can sustain to produce in a given period.

Allocation Base

A criterion or measure used for distributing overhead costs among various cost objects, such as departments or products.

Fixed

Expenses that do not change in total over a short period, regardless of the level of production or sales activity, such as rent, salaries, or insurance.