Which of the following statements is true about strategic business units (SBUs)?

a. They do not have competitors of their own.
b. They do not plan collaboratively with other SBUs.
c. They do not have specific target markets.
d. They do not perform manufacturing and marketing functions.


ANSWER: b

When properly created, a strategic business unit has a distinct mission and a specific target market. Each SBU has its own rate of return on investment, growth potential, and associated risks, and requires its own strategies and funding

Business

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The ________ is considered as the standard rate for variable overhead variances

a. prior–year rate b. actual rate c. predetermined overhead rate. d. industry average rate

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The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

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weekend. Each ticket sells for $25. John's boss asked him to work overtime the same weekend and at the same time as the concert. John currently makes $10.00 an hour and his overtime pay for the four hours his boss asked him to work is double the hourly rate. If John decides to go to the concert, his opportunity cost is A) $50.00 for the two tickets. B) $50.00 because that is what his friend paid for the tickets. C) $40.00 in lost pay. D) $80.00 in lost pay. E) nothing because the concert tickets were free for John.

Business