ChapterCase 8 Highlights the Corporate-Level Strategy of General Electric

question 50

Multiple Choice

ChapterCase 8 highlights the corporate-level strategy of General Electric.As noted,CEO Jeffrey Immelt decided to refocus GE's portfolio of businesses and leverage the firm's core competencies in industrial engineering while pursuing future-growth industries.The two industries CEO Immelt had decided will provide strategic importance to the firm are ___________ and ____________.

• A) Home appliances; entertainment
• B) The green economy; health care
• C) Capital markets; information technology
• D) Consumer electronics; education

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Definitions:

Direct Materials

Materials that can be directly linked to the production process of a product and are essential components of the final product.

First-In, First-Out Method

An inventory valuation method where the first items acquired are assumed to be sold first, affecting the cost of goods sold and ending inventory valuation.

Materials Cost

The direct and indirect costs associated with the raw materials used in the production of goods.

Equivalent Unit

An Equivalent Unit is a measure used in cost accounting to express the amount of work done on partially finished goods in terms of fully finished goods.