Strategic Business Units

question 235

Multiple Choice

Strategic business units:

• A) Are not treated as separate profit centers.
• B) Are organizational units within a larger company.
• C) Should receive an equal amount of attention and resources.
• D) Should never be dropped or sold.
• E) None of the above.

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Definitions:

Lubrication Cost

The expense associated with maintaining machinery through oiling and greasing to ensure smooth operation.

Variable Lubrication Cost

A variable cost associated with the amount of lubrication needed for machinery in the manufacturing process, which varies with the level of production activity.

Machine Hour

A unit of measure that represents the operation of machinery or equipment for one hour, used in allocating manufacturing overhead.

Least-squares Regression

A statistical method used to determine the relationship between variables by minimizing the sum of the squares of the differences between observed and predicted values.