The Purpose of a _____ Strategy Is to Turn Around

question 48

Multiple Choice

The purpose of a _____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.

• A)growth
• B)stability
• C)retrenchment
• D)maturity
• E)repositioning

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Definitions:

Fixed Overhead

Charges that keep the same level despite the degree of manufacturing or sales activities, including space rental, worker wages, and protection plans.

Predetermined Overhead Rate

An estimated overhead cost rate used in cost accounting to allocate overhead expenses to products or job orders.

Direct Labor Costs

Compensation and perks given to workers directly engaged in creating products or services.

Fixed Overhead

Regular, unchanged costs associated with operating a business, such as rent and salaries, irrespective of production levels.