When Calculating Industry Attractiveness Scores,to Produce a Valid Response It

question 18

Multiple Choice

When calculating industry attractiveness scores,to produce a valid response it is necessary to

• A) ensure the appropriate weights are assigned to each measure and that the preparer has sufficient knowledge to rate the industry on each attractiveness measure.
• B) ensure the weights are assigned evenly so as not to bias the attractiveness scores.
• C) ensure at least three companies within the industry are clearly well-understood to ensure validated scores.
• D) be prepared to make an educated guess if the available information is skimpy.
• E) All of these choices are correct.

---

Definitions:

Raw Materials

Basic materials and components that are used in the manufacturing process to produce finished goods.

Journal Entries

Records in accounting that document financial transactions and their impact on the accounts of an organization in a chronological order.

Indirect Materials

are materials used in the production process, but not directly traceable to a finished product, like lubricants for machinery.

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing process of a product and are a major component of the cost of goods sold.