IBM Still Offers Typewriters Even Though It Does Not Invest

question 41

Multiple Choice

IBM still offers typewriters even though it does not invest much in future innovations of its typewriter line.Instead,it has chosen a _________ strategy to maximize cash flow from the remaining demand for typewriters.

• A) Harvest
• B) Divest
• C) Exit
• D) Consolidate

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Definitions:

Factory Overhead Cost

Manufacturing expenses, except for direct materials and direct labor costs.

Direct Materials

Raw materials that are directly traceable to the production of a specific product.

Manufactured Product

Items that have been produced from raw materials through a process involving labor and machinery, making them ready for sale.

Managerial Accounting

The act of detecting, assessing, scrutinizing, and sharing economic information with executives to help in reaching the goals of an organization.