Which of the Following Statements Is True of Corporate Strategy

question 9

Multiple Choice

Which of the following statements is true of corporate strategy?

• A) The objective of corporate-level strategy is to ensure that the sum of the values of individual business units is greater than the overall corporate value.
• B) A corporate strategy must be able to create synergies across business units that are quite different.
• C) Formulating a corporate strategy involves general managers answering questions relating to how to compete in order to achieve superior performance.
• D) Deciding whether to adopt a differentiation or a cost-leadership strategy is part of formulating the corporate strategy.

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Definitions:

Overhead Rate

The ratio of indirect costs to a base activity, used to allocate overhead costs to products or job orders.

Work In Process

Partially finished goods that are in the midst of the production process, not yet ready for sale but representing a portion of inventory.

Direct Labor

The wages and related costs for personnel who are directly involved in the production process of a company's products or services.

Factory Overhead Applied

This term refers to the amount of indirect manufacturing costs allocated to products based on an estimated overhead rate.