When a Firm Is Determining Its Opportunities and Threats,which of the Following

question 33

Multiple Choice

When a firm is determining its opportunities and threats,which of the following would not be mentioned?

• A)An intense rivalry with a local competitor was beginning to start a price war.
• B)The firm just received a patent on its main product.
• C)The success of the firm's latest marketing campaign.
• D)In spite of its patent,there are several substitute products consumers could use.
• E)Increased efficiency in the manufacturing process.

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Definitions:

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as utilities, maintenance, and salaries of supervisory personnel.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and certain labor costs; they do not remain constant as production levels fluctuate.

Fixed Manufacturing Overhead

Represents the indirect costs associated with manufacturing that do not vary with the level of production, such as factory rent, salaries of factory supervisors, and depreciation of factory equipment.

Machine-Hours

A unit of measure representing the operating time of machines used in the production of goods.