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

Multiple Choice

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

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