Cheryl Has Been Examining Data from Her Company and Discussing

question 158

Multiple Choice

Cheryl has been examining data from her company and discussing its successes and failures with the different division heads and managers.She has drawn up a list of the company's strengths and found that it is very good at promotion and meeting clients' delivery needs on time.She has discovered that the company is very slow with collecting its receivables and therefore has a significant lag between the time merchandise is ordered,delivered,and when payment is made.She also discovered that a new company is producing the same goods as hers and is selling them for less money and with a better guarantee.Finally,she has discovered that there is a great need for her company's product in the education field and that this market is virtually untapped.Which of the following best describes Cheryl's activities?

• A) She is doing an environmental analysis.
• B) She is doing a SWOT analysis.
• C) She is writing an executive summary.
• D) She is drafting the marketing strategies.

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Definitions:

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.

Squared Deviations

The squares of the differences between individual observations and the mean of those observations, used in variance and standard deviation calculations.

Cost Line

A graph representation showing the relationship between the cost incurred by a company and the level of activity or volume of production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate representation of product costs.