Firms Such as PepsiCo That Operate a Number of Businesses

question 70

Multiple Choice

Firms such as PepsiCo that operate a number of businesses around the world that share a number of inputs, production technologies, or distribution channels but none of whose businesses account for more than 70% of a firm's revenues are said to be implementing a

• A) related-constrained diversification.
• B) related-linked diversification.
• C) dominant-business diversification.
• D) single-business diversification.

Understand the concept of separation of duties and its importance in reducing errors and fraud.

Acquire knowledge about the components, purposes, and limitations of an internal control system.

Understand the functionality and navigation of Excel's Ribbon interface, including locating specific tools and their paths.

Grasp the operation modes of Excel, such as Insert and Overtype, and how to toggle between these modes.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

The total hours that a machine is operational, used as a measure for allocating manufacturing overhead costs.

Plantwide Predetermined

A method that assigns overhead costs to products based on a single predetermined overhead rate for the entire factory or plant.

Manufacturing Overhead

Refers to all the indirect costs associated with the production process, excluding direct materials and direct labor costs.