The Applicability of the Tools and Techniques of Strategy Analysis

question 23

Multiple Choice

The applicability of the tools and techniques of strategy analysis to not-for-profit organizations is:

• A)Greater for organizations that face competition than those that do not
• B)Greater for organizations that charge for their services than those which do not
• C)Greater for organizations that compete to for funding than those which compete for customers.
• D)Is severely limited by the lack of a profit motive

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Additional Parts

Components or pieces beyond the basic requirements that are included in the manufacturing or assembly of a product.

Idle Capacity

Unused or underused production capability within a manufacturing facility, often resulting in inefficiency and lost potential revenue.

Full (Absorption) Cost

The total cost of a product that includes all direct and indirect costs, such as raw materials, labor, and overhead, required for its production.