A Segment Is Unattractive If It Already Contains Numerous, Strong

question 30

True/False

A segment is unattractive if it already contains numerous, strong, or aggressive competitors.

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Definitions:

Machine-Hours

A unit of measurement representing the operating time of a machine, used in the calculation of manufacturing costs and machinery utilization.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to corresponding products and services according to their engagement in activities.

Overhead Costs

Expenses related to the operation of a business that cannot be directly linked to a specific product or service, such as utilities and administration salaries.

Indirect Labor

Labor costs not directly associated with the manufacture of products or performance of services, such as maintenance and supervision.