According to Michael Porter's Diamond in Figure 7-2 Above,quadrant "D

question 80

Multiple Choice

According to Michael Porter's diamond in Figure 7-2 above,quadrant "D" represents

• A)factor conditions.
• B)related and supporting industries.
• C)demand conditions.
• D)managerial conditions.
• E)company strategy,structure,and rivalry.

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Definitions:

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made.

Departmental Overhead Rate

This is a method of allocating overhead costs to specific departments based on their respective proportions of an allocation base, such as machine hours or labor hours.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate product cost.

Overhead Cost Allocation

The process of distributing indirect costs to various cost objects like products, projects, or departments.