Which of the Following Is the Weakest an Example of a "Shock

question 25

Multiple Choice

Which of the following is the weakest an example of a "shock"?

• A)Contracting to use another firm's proprietary process
• B)Product Innovations
• C)Discoveries of new sources of consumer value or market segments
• D)Shifts in demand
• E)Changes in public policy that enables firms to significantly shift their strategic position in a business

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Definitions:

Plantwide Predetermined Rate

A single overhead rate calculated using the total estimated overhead costs divided by an estimated allocation base for an entire factory or plant.

Machine-Hours

A measure of the time that a machine is in operation, used in costing and operational analysis.

Departmental Predetermined Rates

Overhead allocation rates set in advance for specific departments to allocate indirect costs more accurately.

Markup

An additional amount included in the cost price of products to account for overheads and gain, thereby establishing the price at which they are sold.