Which of the Following Is a Quantitative Screening Criterion for Evaluating

question 6

Multiple Choice

Which of the following is a quantitative screening criterion for evaluating opportunities?

• A) Weaknesses the firm should avoid
• B) Kinds of business the firm wants to exclude
• C) Kinds of business the firm wants to be in
• D) Resources the firm should build on
• E) Return on investment (ROI) target for the firm

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Definitions:

Fixed Overhead Budget

A forecast of the fixed costs that a company expects to incur over a certain period, helping in planning and controlling expenses.

Fixed Overhead Volume

The portion of fixed overhead costs that reflect the difference between actual production volume and the standard or expected production volume.

Variable Overhead Rate

The rate at which variable overhead costs are applied to production, often based on direct labor hours or machine hours.

Overhead Efficiency

Overhead efficiency refers to a measure of how effectively a business manages its overhead costs relative to its operational productivity or revenue generation.