Growth Strategies Are "Either/or" Propositions; a Focus on Core Businesses

question 59

True/False

Growth strategies are "either/or" propositions; a focus on core businesses means foregoing new market opportunities.

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Definitions:

Capital Budgeting

The process businesses use to evaluate and select long-term investments that are expected to yield returns over a period of time.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Forecasted Cost

An estimate of the expenses that will be incurred on a project or by a company in a future period.

Average Cost

The total cost of goods available for sale divided by the total number of units available for sale, determining an inventory valuation.