Diversification Refers To

question 2

Multiple Choice

Diversification refers to:

• A)moving from an industry market segment into another, related segment.
• B)the number of similar businesses or business activities at the same level of the value chain.
• C)moving from one industry into another.
• D)cost advantages that a business obtains through expanding in size.
• E)the sale of products or services in one country that are sourced in another country.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including maintenance, utilities, and salaries of support staff.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products, such as lubricants and maintenance supplies.

Baker's Salaries

The compensation paid to individuals employed in a bakery to perform tasks such as baking, decorating, and customer service.

Goods Manufactured

The total quantity of products completed and ready for sale during a specified accounting period.