When a Firm Is Overly Dependent on One or More

question 96

Multiple Choice

When a firm is overly dependent on one or more products or markets, and the intensity of rivalry in that market is intense, the firm may wish to ____ by making an acquisition.

• A) increase new product speed to market
• B) broaden its competitive scope
• C) increase its economies of scale
• D) overcome entry barriers

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Definitions:

Efficiency Variances

The difference between the actual amount of an input used and the expected (or standard) amount needed, multiplied by the standard cost per unit of input.

Landing Gears

A critical aircraft component that supports the plane during landing and takeoff.

Materials Price Variance

The difference between the actual cost of materials and the expected cost, multiplied by the quantity of materials used.

Variable Overhead

Costs of indirect materials, indirect labor, and other operations that fluctuate with the level of production output.