1. An important benefit of activity based costing is
a. The simplicity of cost allocation.
b. The acknowledgment and reward of employee effort.
c. The ability to monitor the board of directors.
d. The ability to highlight waste and streamline business processes.
e. The acceptance by stockholders of other sources of financing.
2. Although Pearl Beverage Company had focused only on malt beverage products containing alcohol for the past two decades, the company is now considering entering the bottled iced tea arena as well. If Pearl decides to enter the bottled iced tea arena, it would be using a __________ strategy.
a. differentiation
b. vertical integration
c. conglomerate diversification
d. concentration
e. concentric diversification