The Authors Cite IKEA as Achieving an Intercompany Scope of Strategic

question 3

Multiple Choice

The authors cite IKEA as achieving an intercompany scope of strategic fit which serves to

• A)minimize IKEA's costs.
• B)align the strategic fit with the consumer surplus.
• C)minimize the costs of all supply chain elements.
• D)increase the supply chain surplus.

---

Definitions:

Actual Costs

The real costs that a company incurs for producing or acquiring goods or services.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost of materials that were expected to be used.

Overhead

encompasses all ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and administrative costs.

Standard Labor Hours

The preset amount of time that is expected to be required to complete a specific task or job under normal conditions.