Management's Ranking of Business Units and Establishing a Priority for Resource

question 28

Multiple Choice

Management's ranking of business units and establishing a priority for resource allocation should

• A)utilize activity-based costing and benchmarking to determine the funding needs of each business unit.
• B)first consider the strength of funding proposals presented by managers of each division or business unit.
• C)give priority for funding to cash-hog businesses.
• D)put business units with the brightest profit and growth prospects and solid strategic and resource fits at the top of the investment priority list.
• E)always make the company's business units with strong resource strengths and competitive capabilities the central focus of funding initiatives.

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