When an Organization Attempts to Combine with Other Organizations in Different

question 24

Multiple Choice

When an organization attempts to combine with other organizations in different and disassociated industries, the strategy is known as a(n) ________ strategy.

• A) stability
• B) unrelated diversification
• C) horizontal integration
• D) vertical integration

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Definitions:

Manufacturing Cells

A layout design in manufacturing where machines and workers are grouped together to produce a specific product or component.

Conversion Costs

Costs required to transform raw materials into finished products, combining direct labor and manufacturing overhead.

FIFO Method

"First in, first out," an inventory valuation method that assumes goods are sold in the order they were acquired or produced.

Beginning Work

Refers to the initial stages or processes of starting a project, task, or job in a business or manufacturing setting.