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Answer the following questions using the information below: Block Island TV currently sells large televisions for $360. It has costs of $280. A competitor is bringing a new large television to market that will sell for $300. Management believes it must lower the price to $300 to compete in the market.
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1) ________ describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives. A) Strategy B) Planning C) Learning and growth perspective D) Customer perspective 2) In general, profit potential ________ with greater competition, stronger potential entrants, products that are similar, and.
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11) Companies that produce high quality products do NOT have to pay attention to the actions of their competitors. 12) Relevant costs for pricing decisions include manufacturing costs, but NOT costs from other value-chain functions. 13) Prices are decreased when demand is weak and competition is strong and increased when demand.
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5) When analyzing the change in operating income, the strategy component of price-recovery: A) calculations are similar to the efficiency-variance calculations B) compares the change in output price with the changes in input prices C) will report a large positive amount when a company has successfully pursued the cost leadership.
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31) Value engineering has the objective of increasing costs while still satisfying customer needs. 32) Reverse engineering has the objective of reducing costs while still satisfying customer needs. 33) Rework is an example of a value-added cost. 34) A value-added cost is a cost that, if eliminated,would increase the actual.
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13) Measures of the balanced scorecard's customer perspective include all of the following EXCEPT: A) market share B) customer satisfaction C) number of new customers D) customer training on new products 14) Measures of the balanced scorecard's internal-business-process perspective include: A) market share B) new product development time C) employee education D) return on investment 15) Measures of the balanced.
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Answer the following questions using the information below: Ernie Shavers, Inc. manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to.
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12) What terms describe the relationship between different quantities of inputs consumed and the quantities of output produced? A) budgeted costs or actual costs B) production technology or production function C) static budget or flexible budget D) production technology or production setup 13) Total factor productivity will increase if: A).
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Answer the following questions using the information below: Meale Company makes a household appliance with model number X500. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can.
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1) ________ is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost, quality, service, speed, and customer satisfaction. A) Strategy B) Customer perspective C) Learning and growth perspective D) Reengineering 2) Successful reengineering involves: A) cutting across functional lines to.
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31) Timothy Company has budgeted sales of $780,000 with the following budgeted costs: Direct materials$168,000 Direct manufacturing labor132,000 Factory overhead Variable96,000 Fixed108,000 Selling and administrative expenses Variable72,000 Fixed100,000 Compute the average markup percentage for setting prices as a percentage of: a.Total manufacturing costs b.The variable cost of the product c.The full cost of the product d.Variable manufacturing costs 1) Life-cycle costing.
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21) For short-run product-mix decisions, maximizing contribution margin will also result in maximizing operating income. 22) To maximize profits, managers should produce more of the product with the greatest contribution margin per unit of the constraining resource. 23) When there is a constraining resource, the firm should attempt to maximize sales.
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9) Unused capacity is difficult to determine for: A) engineered costs B) discretionary costs C) both engineered and discretionary costs D) neither engineered nor discretionary costs 10) To effectively deal with unused capacity a company: A) may downsize B) may retain some unused capacity for future growth C) should consider.
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11) Relevant costs of a bidding decision should EXCLUDE revenues lost on lower-priced sales to existing customers. 12) Customers prefer stable and predictable prices over a long time horizon. 13) Product cost analysis is important even if market forces set prices. 14) Two different approaches to pricing decisions are market.
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45) An analysis of Rodney Corporation's operating income changes between 2011 and 2012 show the following: Operating income for 2011$2,000,000 Add growth component100,000 Deduct price-recovery component(60,000) Add productivity component240,000 Operating income for 2012$2,280,000 Required: Is Rodney's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly. 46) An analysis of Captain.
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15) An operating income analysis of Deb Nunn Incorporated revealed the following: Operating income for 2012$1,500,000 Add growth component45,000 Add price-recovery component200,000 Deduct productivity component(24,000) Operating income for 2013$1,721,000 Nunn's operating income gain is consistent with the: A) product differentiation strategy B) downsizing strategy C) reengineering strategy D) cost leadership strategy Answer the following questions.
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11) Management should focus on per unit costs when deciding whether to discontinue a product or not. 12) Avoidable variable and fixed costs should be evaluated when deciding whether to discontinue a product, product line, business segment, or customer. 13) All corporate-office allocated costs should be included in relevant-cost analysis. 14).
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35) The customer perspective under the balanced scorecard approach would include measures on cost reduction. 36) When implementing a balanced scorecard, the cause-and-effect linkages are always precise. 37) Different strategies call for different scorecards. 38) Buck Corporation plans to grow by offering a computer monitor, the CM3000 that is superior and.
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Answer the following questions using the information below: Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition. Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy. 24).
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50) Describe three key components in performing a strategic analysis of operating income. 1) Engineered costs: A) arise from periodic (usually annual) decisions B) often incur a delay between when the resource is acquired and when it is used C) include R&D and human resource costs D) include a high.
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Answer the following questions using the information below: Gerry's Generator Supply is approached by Mr. Sandman, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to.
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3) The first step to successful balanced scorecard implementation is clarifying the: A) organization's vision and strategy B) elements that pertain to value-added aspects of the business C) owner's expectations about return on investment D) objectives of all four balanced scorecard measurement perspectives 4) The balanced scorecard is said to.
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42) Steven Corporation manufactures fishing poles that have a price of $42.00. It has costs of $32.64 A competitor is introducing a new fishing pole that will sell for $36.00. Management believes it must lower the price to $36.00 to compete in the highly cost-conscious fishing pole market. Marketing believes.
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2) Yield variances: A) reveal the effect of substitution within a single factor of production B) address the productivity of a single component of one factor of production C) capture both substitutions between factors of production as well as within factors of production D) reveal the effect of substitution within.
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1) Target pricing: A) is used for short-term pricing decisions B) is one form of cost-based pricing C) estimates are based on customers' perceived value of the product D) relevant costs are all variable costs 2) To understand how competitors might price competing products, a company: A) needs to understand.
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19) Hasselhoff Camera is considering eliminating Model EOS1 from its camera line because of losses over the past quarter. The past three months of information for model EOS1 is summarized below: Sales (1,000 units)$250,000 Manufacturing costs: Direct materials90,000 Direct labor ($15 per hour)80,000 Support100,000 Operating loss($20,000) Support costs are 70% variable and the remaining 30% is.
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19) Employee training and development cost is an example of an discretionary cost. 20) It is relatively easy to identify unused capacity for discretionary costs. 21) Downsizing is an integrated approach of configuring processes, products, and people to match costs to the activities that need to be performed to operate.
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Answer the following questions using the information below: Victoria, Inc., is considering replacing a machine. The following data are available: Replacement Old MachineMachine Original cost$90,000$70,000 Useful life in years105 Current age in years50 Book value$50,000? Disposal value now$16,000? Disposal value in 5 years00 Annual cash operating costs$14,000$8,000 11) Which of the data provided in the table is a sunk cost? A).
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40) For each of the following measures, identify which perspective of the balanced scorecard it represents: financial, customer, internal-business-process, or learning-and growth. 1.service response time 2.market share 3. gross margin percentage 4. defect rates 5. customer satisfaction 6. information system availability 7. new-product development time 8. economic value added 9. employee education 10. manufacturing downtime 41) What is the primary purpose.
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Answer the following questions using the information below: Timothy Company has invested $1,000,000 in a plant to make vending machines. The target operating income desired from the plant is $150,000 annually. The company plans annual sales of 1,500 vending machines at a selling price of $1,000 each. 11) What is the target.
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5) Price discrimination laws apply only to manufacturers. 6) Price discrimination is only illegal if the intent is to destroy competition. 7) A company engages in predatory pricing when it deliberately prices below its costs in an effort to drive competitors out of the market and restrict supply, and then.
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Answer the following questions using the information below: Melodee's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for.
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16) Life-cycle budgeting is particularly important when nonproduction costs are significant. 17) The product life cycle spans the time from initial R&D on a product to when customer service and support is no longer offered for that product. 18) Customer life-cycle costs focus on total costs incurred by the customer from.
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