What Makes Related Diversification an Attractive Strategy Is

question 27

Multiple Choice

What makes related diversification an attractive strategy is

• A) the ability to broaden the company's product line.
• B) the opportunity to convert cross-business strategic fits into competitive advantages over business rivals whose operations don't offer comparable strategic fit benefits.
• C) the potential for improving the stability of the company's financial performance.
• D) the ability to serve a broader spectrum of buyer needs.
• E) the added capability it provides in overcoming the barriers to entering foreign markets.

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Definitions:

Equivalent Units

A concept in process costing used to compute the amount of complete units that could have been produced given the total amount of work done.

Weighted-Average Method

An inventory valuation method that averages the cost of all similar goods available during a period to determine the cost of goods sold and ending inventory value.

Conversion Costs

Expenses related to turning raw materials into complete goods, usually encompassing direct workforce costs and manufacturing overhead expenses.

Processing Department

A section within a manufacturing facility where raw materials are converted into finished products through a series of operations or processes.