Michelin Is in the Process of Doing a SWOT Analysis

question 152

Multiple Choice

Michelin is in the process of doing a SWOT Analysis. Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis?

• A)Michelin is more able to change a threat than a weakness.
• B)Michelin is more able to change a weakness than a threat.
• C)Michelin can be more negatively affected by a weakness than by a threat.
• D)Michelin can be more negatively affected by a threat than by a weakness.
• E)Michelin can more easily identify threats than weaknesses.

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Definitions:

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of raw material.

Raw Materials Price Variance

The difference between the actual cost of raw materials purchased and the standard or expected cost, reflecting variances in purchase prices.

Raw Materials Quantity Variance

The difference between the expected and actual quantity of raw materials used in production, affecting manufacturing costs.

Materials Price Variance

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