When Companies Extend Their Horizons and Identify Opportunities Outside Existing

question 142

Multiple Choice

When companies extend their horizons and identify opportunities outside existing product lines,the result is ________.

• A) conglomeration
• B) multiple product lines
• C) ubiquity
• D) universalism

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Definitions:

Labor Rate

The amount paid to an employee per unit of time, usually per hour or year.

Direct Materials Purchase Budget

A financial plan that estimates the quantities and costs of direct materials to be purchased to meet production requirements.

Ending Inventories

Ending inventories refer to the final amount of goods available for sale or use at the end of an accounting period.

Direct Labor Budget

A financial plan that estimates the cost of direct labor needed to meet production needs within a specific timeframe.