A Business Strategy Is the Strategic Plan For

question 156

Multiple Choice

A business strategy is the strategic plan for:

• A) managing multiple lines of businesses.
• B) managing one line of business.
• C) managing one area of a business.
• D) none of these

Recognize the importance of selecting appropriate cost drivers in the allocation of costs.

Understand how indirect and direct costs are allocated within departments and across products.

Learn how to compute allocation of maintenance, advertising, and other indirect costs based on different bases such as square footage and sales values.

Differentiate between service, cost, and profit centers within an organization.

---

Definitions:

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body through electrical and chemical signals.

Messages

Pieces of communication or information conveyed from one individual to another through various means.

Size Constancy

The perception that an object's size remains the same despite changes in the distance from which it is viewed.