Diversification Analysis Refers to

question 181

Multiple Choice

Diversification analysis refers to

• A) a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
• B) a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
• C) a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
• D) a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive.
• E) a framework that identifies four "generic" strategies to achieve a competitive advantage.

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Definitions:

Labour Rate Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production level.

Actual Rate

The actual cost incurred or the price paid for materials, labor, or overhead as opposed to budgeted or standard costs.

Standard Rate

A predetermined cost that is often used in budgeting and costing exercises to estimate the expected rate for services or products.

Direct Labour

The cost associated with employees who are directly involved in the production process.