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The integration of a cost leadership 1. Focus strategies are a. sheltered from the risks associated with industry-wide strategies because of their niche focus. b. able to avoid global risk by focusing on niches in national or regional markets. c. faced with additional types of risks than are industry-wide strategies. d. more subject to failure than industry-wide strategies. 2. New Balance Athletic Shoes target Baby Boomersà ...

Other / Other 30 Mar 2016

The typical risks of a differentiation strategy 1. A manufacturer of jewelry imitates the style of a popular and expensive brand using manufactured stones rather than real gemstones and lesser grade metals rather than silver and gold. The manufacturer packages the jewelry in boxes of the same color imprinted with an almost identical logo. About 85 percent of the company’s sales are through Internet sales. This example illustrates th ...

Other / Other 30 Mar 2016

Determining How Costs Behave Objective 1) A cost function is a ________. A) process of calculating present value of projected cash flows B) process of allocating costs to cost centers or cost objects C) mathematical description of how a cost changes with changes in the level of an activity relating to that cost D) is a very thorough and detailed way to identifying a cost object when there is a physical relationship between inp ...

Other / Other 30 Mar 2016

Ever improving levels of efficiency enhance profit margins 1. A company pursuing the differentiation or focused differentiation strategy would tend to a. have highly efficient systems linking suppliers’ products with the firm’s production processes. b. use economies of scale. c. have strong capabilities in basic research. d. make investments in easy-to-use manufacturing technologies. 2. When the costs of supp ...

Other / Other 30 Mar 2016

A firm successfully implementing a differentiation strategy 1. A firm successfully implementing a differentiation strategy would expect a. customers to be sensitive to price increases. b. to charge premium prices. c. customers to perceive the product as standard. d. to have high levels of power over suppliers. 2. The products or services that are differentiated from others have qualities that are a. perceived by the ...

Other / Other 30 Mar 2016

Which value creating strategies best satisfy customer needs 1. Which value creating strategies best satisfy customer needs? a. Firm resources b. Capabilities c. Core competencies d. None of the above. 2. The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how a. the organizational culture of Southwest Airlines is the key to the success of the organization. b. understanding of the p ...

Other / Other 30 Mar 2016

A finance manager has to select one of the four different suppliers of raw materials 1) Which of the following statements is true of a linear cost function? A) It presents variable cost as a slope coefficient. B) It presents total cost as an intercept. C) It presents variable cost as an intercept. D) It presents total cost as slope coefficient. 2) A finance manager has to select one of the four different suppliers of raw materi ...

Other / Other 30 Mar 2016

All cost functions are linear 1) All cost functions are linear. 2) In a cost function y = 18,000, the slope coefficient is zero. 3) When estimating a cost function, cost behavior can be approximated by a linear cost function within the relevant range. 4) y = a + bX, y = a, and y = bX are the three basic types of linear cost functions. 5) All other things being equal, the longer the time horizon the more likely a cost ...

Other / Other 30 Mar 2016

A cost function is a mathematical description 1) The cost function y = 10,000 + 3X ________. A) represents a mixed cost B) will intersect the y-axis at 3 C) has a slope coefficient of 10,000 D) is a curved line 2) Which of the following functions represents the least total cost assuming the number of units is equal in each case? A) y = 180 + 7X B) y = 90 + 6X C) y = 90 + 7X D) y = 180 + 6X 3) Which of the following i ...

Other / Other 30 Mar 2016

Companies successfully implementing an integrated cost leadership/differentiation strategy 1. Target has been able to flourish in locations with Wal-Mart stores because a. Wal-Mart has suffered from the inertia that comes with long success and reliance on the same core competencies. b. Target is using a focused cost-leadership strategy and has a much narrower competitive scope than Wal-Mart. c. Target is able to offer lower prices than ...

Other / Other 30 Mar 2016