Which of the Following Statements Concerning SWOT Analysis Is False

question 2

Multiple Choice

Which of the following statements concerning SWOT analysis is false?

• A) Strengths are the factors that give the firm a comparative advantage in the marketplace.
• B) Weaknesses result when the company has potentially exploitable advantages over other firms.
• C) Opportunities are environmental factors that favour the firm.
• D) Threats are environmental factors that can hinder the firm in achieving its goals.
• E) None of the above (that is, all statements are true).

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Definitions:

Conversion Costs

Costs incurred during the transformation of raw materials into finished goods, typically including direct labor and manufacturing overhead.

Process Costing

A costing system used in industries where goods are produced in a continuous process, costs are accumulated by process or department, and averaged over the units produced.

Weighted-Average Method

A costing approach for inventory that determines the cost of goods sold and the final inventory value by averaging the cost of all available units for sale over the period.

Process Costing

An accounting methodology used to allocate the costs of producing products that are indistinguishable from each other and are produced in a continuous process.