A Situation Analysis Requires a Firm to Consider the External

question 6

Multiple Choice

A situation analysis requires a firm to consider the external forces and trends that affect it.Some of these may be favorable to the organization while others may be unfavorable.Which of the following is an example of an external force?

• A)The firm buys its own fleet of trucks,so it no longer needs to hire a trucking company for distribution.
• B)A hiring freeze is put into place.Although no one is fired,no one can be hired.
• C)A goal is set to close the gap between production costs and profits.
• D)A local government requires that all businesses within the city limits must recycle or be fined.
• E)Shareholders are rewarded with a sizeable dividend check.

Interpret the correlation coefficient and its relation to the strength of linear relationships.

Understand the application and interpretation of the least squares method in fitting a regression line.

Grasp the concept of residuals and their importance in regression analysis.

Identify and interpret the significance of regression models using p-values and F-statistics.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Labor Standards

Benchmarks or criteria set for the amount of time and effort required to perform tasks efficiently and effectively.

Direct Labor-Hours

The total hours worked directly on the production of goods or provision of services, often used as a basis for assigning labor costs to products.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard labor rate.