Financial Dimensions of Performance Are Usually of Greater Interest Than

question 6

Multiple Choice

Financial dimensions of performance are usually of greater interest than growth-oriented dimensions to defender businesses because they are concerned with:

• A)maximising profitability over the remaining life of their existing product markets
• B)creating new opportunities in one or more mature market segments
• C)volume increases or new product success
• D)passively defending their mature products

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Definitions:

Activity-based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Overhead Costs

Indirect costs of running a business that are not directly tied to production, such as rent, utilities, and salaries.

Departmental Overhead Rate

An allocation rate used to assign overhead costs to specific departments based on relevant criteria, such as labor hours or machine hours.

Machine Hours

Machine hours refer to the total operating time of a machine or group of machines during a specific period, used as a basis for allocating costs in manufacturing.