The Five Questions (5Qs)of Business Strategy Do NOT Include

question 16

Multiple Choice

The five questions (5Qs) of business strategy do NOT include:

• A)What products and services does the company plan to produce?
• B)What customer and geographic markets does the company plan to service?
• C)What generic strategy must the company avoid in a differentiated market?
• D)What position in the industry does the company plan to hold in the future?

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Definitions:

Standard Costs

Predetermined or estimated costs that are used as benchmarks for measuring the performance of actual costs in manufacturing or production.

Actual Costs

Actual costs are the real or true costs incurred for materials, labor, and overhead in the production of goods or provision of services, as opposed to estimated or standard costs.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used to analyze labor cost efficiencies or inefficiencies during production.

Standard Costs

Predetermined or budgeted costs serving as benchmarks for measuring performance, commonly used for budgeting and variance analysis.