Porter's Five Forces Model Is Used to Evaluate Competition Based

question 6

Multiple Choice

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects?

• A) research and development, cost, legal regulations, suppliers, customers
• B) immediate rivals, potential entrants, customers, suppliers, and substitute products
• C) potential entrants, customers, suppliers, legal regulations, and cost
• D) immediate rivals, potential entrants, cost, substitute products, and legal regulations
• E) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals

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Definitions:

Machine-Hours

A measurement used in cost accounting to allocate expenses to products or job orders, based on the number of hours machines are operated.

Direct Labor-Hours

An indicator of the cumulative hours spent by workers directly engaged in the production process.

Estimated Total Manufacturing Overhead

The projected sum of all indirect costs associated with the production process, not inclusive of direct labor or materials.

Direct Labor-Hours

The cumulative hours spent by workers who are actively engaged in the production process.