PepsiCo Purchased KFC So That It Could Replace Coke Products

question 91

Multiple Choice

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants.This is an example of a _________ strategy.

• A) horizontal integration
• B) vertical integration
• C) low-cost
• D) global
• E) diversification

---

Definitions:

Mechanized Work

Work processes that are performed using machinery and equipment to enhance efficiency and productivity.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total base units used by all products, applied throughout the entire manufacturing plant.

Overhead Allocation Base

A measure or factor used to distribute overhead costs to products or services, such as machine hours or labor costs.

Machine Hours

A metric used in manufacturing to allocate costs based on the number of hours a machine is operated.