Which of the Following Is NOT One of the Advantages

question 36

Multiple Choice

Which of the following is NOT one of the advantages of portfolio analysis?

• A) The graphic depiction facilitates communication.
• B) It provides the basis for impartial objectivity from which to make decisions.
• C) It encourages top management to evaluate each of the corporation's businesses individually.
• D) It raises the issue of cash flow availability for use in expansion and growth.
• E) It stimulates the use of externally oriented data to supplement management's judgment.

---

Definitions:

Direct Material

Raw materials that are directly traceable to the production of a specific good or service.

Purchased

Refers to items or services that have been bought by a company from outside suppliers.

Raw Materials Inventory

Stocks of the basic raw materials that are input into a manufacturing process and are waiting to be processed or used.

Ending Balance

The amount of money or value in an account at the end of a financial reporting period, after all additions and subtractions have been accounted for.