What Is a Benefit of Alliances and Joint Ventures Over

question 13

Multiple Choice

What is a benefit of alliances and joint ventures over mergers and acquisitions?

• A)Better organizational structure
• B)Scale savings
• C)Less vertical integration
• D)Less horizontal integration
• E)Lower likelihood of antitrust scrutiny

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Definitions:

Variable Manufacturing Overhead

The indirect, variable costs associated with manufacturing a product, which change in proportion to production volume.

Fixed Manufacturing Overhead

Refers to the regular, consistent expenses incurred in the operation of a manufacturing facility that do not vary with production volume, including salaries of permanent staff, rent, and insurance.

Predetermined Overhead Rate

A predetermined rate for assigning manufacturing overhead to products, calculated at the start of the period using estimated expenses and levels of activity.

Direct Labor-Hours

Total working hours of employees directly taking part in the production operation or service provision.