A Strategy Used to Add New Businesses That Produce Unrelated

question 83

Multiple Choice

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities is called a

• A)concentration strategy.
• B)vertical integration strategy.
• C)concentric diversification strategy.
• D)conglomerate diversification strategy.
• E)backward integration.

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost expected to be paid, reflecting changes in price.

Raw Materials Price Variance

A measure of the difference between the actual cost of raw materials and the expected (standard) cost.

Labor Efficiency Variance

The difference between the budgeted and actual hours worked, multiplied by the standard labor rate, indicating efficiency in labor usage.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead rate multiplied by the actual activity level.