When a Firm Makes Use of the SWOT Analysis,one of Its

question 185

Multiple Choice

When a firm makes use of the SWOT analysis,one of its objectives is to:

• A)identify the best employees to fill each position within the organization.
• B)set specific short-term performance standards for each department.
• C)evaluate the desirability of issuing stocks or bonds in the current financial climate.
• D)identify the things it does well as an organization and the things it needs to improve.

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Definitions:

Production Activity Costs

The expenses directly associated with the manufacturing process, including labor, materials, and overhead.

Cost Drivers

Factors that cause the cost of activities to increase or decrease, ultimately affecting the overall costs of products or services.

Direct Method

A method of reporting the cash flows from operating activities as the difference between the operating cash receipts and the operating cash payments.

ABC

Activity-Based Costing, a method that allocates overhead and indirect costs to related products and services based on their usage.