Oracle Has Been Diversifying in the Software Industry Through Acquisition

question 138

Multiple Choice

Oracle has been diversifying in the software industry through acquisition of firms such as PeopleSoft as described in the Strategic Focus. There are very close linkages between Oracle and the various units and for the strategy to work, Oracle must develop mechanisms to share activities. Oracle is clearly following a _____________________diversification strategy.

• A) related constrained
• B) unrelated
• C) related linked
• D) dominant business

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing to allocate costs equally among produced units.

Weighted-Average Method

An accounting method used in inventory valuation or cost accounting that averages the costs of all goods available for sale based on their weights.

FIFO Method

Accounting approach where the first goods purchased or produced are the first ones removed from inventory and reported as cost of goods sold.

Cost Reconciliation

The process of checking and ensuring that the accounting records regarding costs correspond with the actual expenses incurred.