CHAPTER_13_20_22_QUIZ - Chp 13 1 Which of the following are...

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Chp 13 1. Which of the following are two generic strategies described in the text that a company can use? a. Growth and product differentiation b. Price recovery and growth c. Product differentiation and cost leadership d. Cost leadership and price recovery 2. Reengineering is a key element in a. cost leadership strategy . b. price-recovery strategy. c. product-differentiation strategy. d. productivity measures. 3. Which of the following is the most critical key aspect of a successful reengineering process? a. Eliminating unnecessary activities and tasks b. Developing employee skills c. Changing roles and responsibilities d. Working across functional lines to focus on the entire business process. 4. The balanced scorecard gets its name from a. an attempt to provide short-run financial results with long-run financial strategies. b. an attempt to balance product quality and cost reduction. c. an attempt to match a company’s own capabilities with the opportunities in the marketplace to accomplish an overall objective. d. an attempt to balance financial and nonfinancial performance measures to evaluate both short- run and long-run performance in a single report. 5. Creating value for customers describes which one of the four perspectives of the balanced scorecard? a. Financial perspective b. Customer perspective c. Internal business process perspective d. Learning and growth perspective 6. The analysis used for evaluating the success of a strategy through changes in operating income components uses actual results of the current year compared to a. budgeted results for the current year. b. actual results for the previous year. c. target amounts for the current year. d. budgeted results for the previous year. 7. The growth in market share is used in calculating the net income effect a. of industry growth. b. of product differentiation. c. of cost leadership. d. of either cost leadership or product differentiation, depending upon the strategy chosen. 8. The following strategic analysis of profitability was prepared for the Corum Company: Revenue and Revenue and Income Cost Effects Cost Effects of Cost Effect of Income Statement of Growth Price-Recovery Productivity Statement Amounts Component Component Component Amounts in 2008 in 2009 in 2009 in 2009 in 2009 (1) (2) (3) (4) (5) Revenues $300,000 $40,000 F $85,000 F $425,000 Costs 240,000 24,000 U 34,000 U $8,000 U 306,000 Operating income $ 60,000 $ 16,000 F $51,000 F $ 8,000 U $ 119,000 $59,000 F
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Change in operating income The market growth rate in the industry was 9% in 2009. Sales in 2009 were 17,000 units at $25 each. Corum sold 15,000 units at a unit-selling price of $20 in 2008. The effect of the industry market size factor for Corum Company in 2009 was b. $10,800. 15,000 units sold in 2008 × 9% growth = 1,350 unit increase due to market size growth 17,000 – 15,000 = 2,000 increase in unit sales $16,000 × 1,350 / 2000 = $10,80 9. A discretionary cost can best be described by which of the following statements? a.
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CHAPTER_13_20_22_QUIZ - Chp 13 1 Which of the following are...

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