What Is a Benefit of Alliances and Joint Ventures Over

question 13

Multiple Choice

What is a benefit of alliances and joint ventures over mergers and acquisitions?

• A)Better organizational structure
• B)Scale savings
• C)Less vertical integration
• D)Less horizontal integration
• E)Lower likelihood of antitrust scrutiny

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Definitions:

Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (budgeted) cost of those materials.

Materials Standards

Predetermined benchmarks for the cost and quantity of materials used in the production process.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, indicating how efficiently materials are being purchased.

Standard Price

A predetermined price that a company aims to pay for materials, labor, and other costs, used for budgeting and performance evaluation.