Diversification Refers to the Strategy of

question 46

Multiple Choice

Diversification refers to the strategy of

• A)increasing sales of current products in existing markets.
• B)selling existing products to new markets.
• C)selling new products to new markets.
• D)selling new products to existing markets.
• E)selling two competing brands but owning them both.

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Definitions:

Standard Machine-Hours

The predetermined amount of machine time estimated or allocated for the production of a unit or batch of products, used for costing and efficiency measurements.

Variable Overhead Rate

The ratio of variable overhead costs to a related activity driver, often used in cost accounting.

Overhead Efficiency

A measurement of how effectively a company uses its overhead costs in generating revenue.

Fixed Overhead Budget

A plan for the fixed costs involved in operating a business, which do not vary with levels of production or sales.