When Using Screening Criteria to Evaluate Opportunities

question 60

Multiple Choice

When using screening criteria to evaluate opportunities:

• A) Marketers must try to match opportunities to the firm's resources and objectives.
• B) Quantitative and qualitative criteria should be considered.
• C) Opportunities that are not expected to be profitable after one year of implementation should always be dropped.
• D) All of the above.
• E) A and B only.

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Definitions:

Work in Process

This refers to the portion of manufactured goods that are not yet completed in the production process.

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor.

T Accounts

A bookkeeping tool used to visualize and simplify the recording of transactions in debit and credit format.

Underapplied Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs.