When Stelco, a Canadian Steel Company, Purchased a Laser-Technology Company

question 2

Multiple Choice

When Stelco, a Canadian steel company, purchased a laser-technology company from one of Canada's leading parts manufacturers for the automobile industry, they followed a(n)

• A) strategic alliance.
• B) divestment strategy.
• C) penetration strategy.
• D) acquisition strategy.
• E) new product strategy.

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Definitions:

Budget Committee

A group responsible for coordinating the preparation of the budget, reviewing and approving budget proposals, and monitoring financial performance.

Master Budget

A master budget is a comprehensive financial planning document that combines all of an organization's individual budgets and plans into a single, unified plan.

High-Low Method

A mathematical method that uses the total costs incurred at the high and low levels of activity to classify mixed costs into fixed and variable components.

Mixed Cost

A cost composed of a fixed and a variable component and changes in total with the level of activity, but not proportionally.