Which of the Following Statements Is a Strategy Decision, Rather

question 156

Multiple Choice

Which of the following statements is a strategy decision, rather than an operational decision?

• A) "We will change the colors of our selection of shirts at the end of the season."
• B) "We will cut prices as needed to in order to protect our market share."
• C) "We will increase the number of training sessions for new sales associates from two to three."
• D) "We will hire a merchandising specialist this month to help remodel our older stores."
• E) "We will place a special ad in the Sunday newspaper promoting our upcoming sale."

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Definitions:

Overhead Rate

The rate at which indirect costs are allocated to products or services, often used in calculating the total cost of production.

Fixed Overhead

Regular, fixed costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Capacity

The maximum amount of goods or services a company can produce or deliver in a given period with existing resources.

Allocation Base

A criterion or measure used for distributing overhead costs among various products, services, or departments within a business.