The Success of a New Venture Division Within a Firm

question 102

Multiple Choice

The success of a new venture division within a firm can be measured using a(n) ________.

• A) external rate of return metric
• B) internal rate of return metric
• C) corporate tax return
• D) evaluation by employees

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Definitions:

Per-unit Standards

Defined benchmarks for the amount of materials, labor, and overhead costs that should be used in producing a single unit of a product.

Direct Labor Hours

The total time workers spend directly manufacturing a product or providing a service.

Standard Direct Materials Costs

The expected or budgeted cost for direct materials which are those materials that can be directly associated with the manufacturing of a product.

Actual Costs

This refers to the genuine expenses incurred during the production or execution of a project, as opposed to estimated costs or budgeted amounts.