Although Conglomerates Such as ITT and Hansen Trust Have Refocused

question 66

Multiple Choice

Although conglomerates such as ITT and Hansen Trust have refocused their portfolios,these firms:

• A) continue to acquire small but successful companies in specific market niches.
• B) have been replaced by other unrelated diversified firms.
• C) still obtain detailed information from a variety of sources about potential acquisitions.
• D) have large corporate staffs that maintain synergies among remaining business units.

---

Definitions:

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead costs to individual units of production based on a specific activity base, such as labor hours or machine hours.

Automated Shaper

A machine tool that uses computer control for shaping or surfacing metal and other materials.

Gross Margin

The difference between revenue and the cost of goods sold, expressed as a percentage of revenue, indicating the portion of sales income that exceeds the cost of goods sold.

Job-Order Costing

A costing method used to determine the cost of producing specific products or jobs, assigning direct materials, labor, and overhead costs to individual jobs based on actual expenses incurred.