It Is Normal for a Company's Strategy to End Up

question 12

Multiple Choice

It is normal for a company's strategy to end up being

• A)a blend of offensive actions on the part of managers to improve the company's profitability and defensive moves to counteract changing market conditions.
• B)a combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals.
• C)a close imitation of the strategy employed by the recognized industry leader.
• D)a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions.
• E)more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings of rivals.

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Definitions:

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.

Budgeted Overhead

The estimated amount of all indirect costs associated with the production process or project.

Single Plantwide

A method used to allocate manufacturing overhead to products, using a single overhead rate for the entire manufacturing plant.

Overhead Rate

The rate at which indirect costs are allocated to produced goods or services, often expressed as a percentage of direct labor or materials cost.