The Marketing Department at ABC Widget Company Has Been Assigned

question 68

Multiple Choice

The marketing department at ABC Widget Company has been assigned the task of developing a strategic plan.The marketing team has completed the first three steps of strategic planning.Which of the following steps does the marketing department need to take in order to complete the strategic planning assignment?

• A) determine the strategies needed to accomplish specific objectives
• B) evaluate the organizational mission of the ABC Widget Company
• C) establish short-term and long-term directions for the group
• D) assess the primary competitors of the ABC Widget Company

---

Definitions:

Absorption Costing

This accounting strategy entails calculating a product's cost by including all costs related to its manufacturing, comprising direct materials, direct labor, and all categories of manufacturing overhead, both variable and fixed.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable overhead) in product costs, excluding fixed overhead.

Net Operating Income

Profit generated from a company’s core business operations, excluding deductions of interest and taxes.

Absorption Costing

This accounting practice involves the comprehensive addition of manufacturing costs—direct materials, direct labor, and both variable and fixed overheads—to the price of a product.