The Final Paragraph in Chapter 6 (Business Model) States That

question 10

Multiple Choice

The final paragraph in Chapter 6 (Business Model) states that a perfect business model on paper is no guarantee of success. It continues by stating that it is probably better to have a mediocre business model with a strong X than a mediocre X of even the very best of business models! What is the condition (X) ?

• A) execution of the business model
• B) extremely uncertain future
• C) if the overall whole is greater than the sum of the parts
• D) if one can't get the numbers to add up

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Definitions:

Materials Price Variance

The difference between the actual cost of direct materials purchased and the standard cost, multiplied by the quantity purchased.

Standard Quantity

The predetermined amount of materials or resources expected to be used in a production process or manufacturing of a product.

Standard Price

A predetermined cost that is set for materials, labor, and overhead to evaluate financial performance against actual costs.

Actual Materials Purchased

The actual quantity of materials bought by a company for production purposes over a given period.