Managing Vertically Related but Strategically Different Businesses Is

question 81

Multiple Choice

Managing vertically related but strategically different businesses is:

• A)Easy, and not an issue for top managers
• B)Not easy, but it is a sign of good top managers to be able to do it
• C)Not easy and generally inadvisable, unless there are specific compelling reasons to do so
• D)Part of what would be expected of corporate managers

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Definitions:

Variable Overhead Item

Costs that vary with the level of production output, such as utilities or materials, and are not fixed over the short term.

Rate Variances

The difference between the actual rate paid for inputs and the standard rate expected, often analyzed for labor or overhead rates.

Efficiency Variances

The difference between the actual amount of an input used and the expected (or standard) amount needed, multiplied by the standard cost per unit of input.

Landing Gears

A critical aircraft component that supports the plane during landing and takeoff.