If All the Businesses in Which a Firm Operates Share

question 11

True/False

If all the businesses in which a firm operates share a significant number of inputs, production technologies, distribution channels, similar customers, and so forth, this corporate diversification strategy is called related-constrained diversification.

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Definitions:

Work in Process

Inventory items that are in the production process but have not yet been completed or fully manufactured.

Materials Purchased

The raw inputs or components bought by a company for use in the production of its goods.

Account

A record within an accounting system that tracks the financial transactions for a specific asset, liability, equity, revenue, or expense.

Activity Bases

Factors or units of measure that are used to allocate costs to cost objects, often related to production or sales volume.