Which of the Following Statements Regarding Internal Development as a Means

question 31

Multiple Choice

Which of the following statements regarding internal development as a means of diversification is false?

• A)Many companies use internal development to extend their product or service offers.
• B)An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.
• C)The firm is able to capture wealth created without having to share the wealth with alliance partners.
• D)Firms can often develop products or services at a lower cost, if they rely on their own resources instead of external funding.

---

Definitions:

Budgeted Factory Overhead

The expected or estimated overhead costs for a factory within a certain period, typically used for planning and control purposes.

Budgeted Fixed Overhead

The predetermined estimate of the total fixed costs required to produce a specific amount of output over a fixed period.

Budgeted Variable Overhead

Estimated costs that vary with production volume, such as utilities or raw materials, not directly tied to labor or capital.