cost-accounting-test-bank-chapter-12

1Copyright©2015PearsonEducation,Inc.CostAccounting,15e(Horngren/Datar/Rajan)Chapter12Strategy,BalancedScorecard,andStrategicProfitabilityAnalysisObjective12.11)Whichofthefollowingstatementsbestdefinestrategy?A)Itdescribeshowanorganizationcancreatevalueforitscustomerswhiledifferentiatingitselffromitscompetitors.B)Itisanorganization'sabilitytoachievelowercostsrelativetocompetitorsthroughproductivityandefficiencyimprovements,eliminationofwaste,andtightcostcontrol.C)Itisanorganization'sabilitytoofferproductsorservicesitscustomersperceivetobesuperioranduniquerelativetotheproductsorservicesofitscompetitors.D)Itdescribeshowanorganizationmotivatesitsemployeestoworkformorehourswithoutanyincreaseintheirwages.Answer:ADiff:2Objective:1AACSB:Analyticalthinking2)Ingeneral,profitpotentialofanorganizationdecreaseswith________.A)lessercompetitionandstrongerpotentialentrantsB)greatercompetitionandstrongerpotentialentrantsC)lessercompetitionandweakerpotentialentrantsD)greatercompetitionandweakerpotentialentrantsAnswer:BDiff:2Objective:1AACSB:Analyticalthinking3)Whichofthefollowingstatementsbestdefineaproductdifferentiationstrategy?A)Itdescribeshowanorganizationcanincreasecustomerbasebydifferentiatingits'productpricesfromitscompetitors.B)Itisanorganization'sabilitytoachievelowercostsrelativetocompetitorsthroughproductivityandefficiencyimprovements,eliminationofwaste,andtightcostcontrol.C)Itdescribeshowanorganizationcandecreaseproductpricesbydifferentiatingits'rawmaterialsfromitscompetitors.D)Itisanorganization'sabilitytoofferproductsorservicesitscustomersperceivetobesuperioranduniquerelativetotheproductsorservicesofitscompetitors.Answer:DDiff:2Objective:1AACSB:Analyticalthinking2Copyright©2015PearsonEducation,Inc.4)Whiledoingindustryanalysisonfiveforces,whichofthefollowingisaforcethatshapesanorganization'sprofitpotential?A)previousyearprofitfiguresB)currentyearprofitfiguresC)bargainingpowerofsuppliersD)researchanddevelopmentAnswer:CDiff:2Objective:1AACSB:Analyticalthinking5)________isanorganization'sabilitytoofferproductsorservicesthatareperceivedbyitscustomersasbeingsuperioranduniquerelativetothoseofitscompetitors.A)StrategyB)ProductdifferentiationC)CostleadershipD)ThebalancedscorecardAnswer:BDiff:1Objective:1AACSB:Analyticalthinking6)________referstoanorganization'sabilitytoachievelowercostsrelativetocompetitorsthroughproductivityandefficiencyimprovements,eliminationofwaste,andtightcostcontrol.A)MarketingstrategyB)ProductdifferentiationC)CostleadershipD)CompetitordifferentiationAnswer:CDiff:1Objective:1AACSB:Analyticalthinking7)Anorganizationthatisusingtheproductdifferentiationapproachwould________.A)focusontightcostcontrolB)useinnovativeresearchanddevelopmentC)provideproductsthataresimilartocompetitorsD)offerproductsatalowercostthancompetitorsAnswer:BDiff:2Objective:1AACSB:Analyticalthinking3Copyright©2015PearsonEducation,Inc.8)Anorganizationthatisusingthecostleadershipapproachwould________.A)incurcostsforinnovativeR&DB)provideproductsatahighercostthancompetitorsC)focusonproductivitythroughefficiencyimprovementsD)bringproductstomarketrapidlyAnswer:CDiff:2Objective:1AACSB:Analyticalthinking9)StewartCorporationplanstogrowbyofferingasoundsystem,theSS3000,thatissuperioranduniquefromthecompetition.StewartbelievesthatputtingadditionalresourcesintoR&Dandstayingaheadofthecompetitionwithtechnologicalinnovationsiscriticaltoimplementingitsstrategy.Stewart'sstrategyis________.A)productdifferentiationB)downsizingC)productleadershipD)costleadershipAnswer:ADiff:2Objective:1AACSB:Applicationofknowledge10)TerbiumCorporationmanufactureswatertoys.Itplanstogrowbyproducinghigh-qualitywatertoysthataredeliveredinatimelymanner.Thereareanumberofothermanufacturerswhoproducesimilarwatertoys.Terbiumbelievesthatcontinuouslyimprovingitsmanufacturingprocessesandreengineeringprocessestodownsizeandeliminateexcesscapacityarecriticaltoimplementingitsstrategy.Outofthetwobasicstrategies,Terbium'sstrategyis________.A)productdifferentiationB)productleadershipC)costdifferentiationD)costleadershipAnswer:DDiff:2Objective:1AACSB:Applicationofknowledge11)Strategydescribeshowanorganizationmatchesitsowncapabilitieswiththeopportunitiesinthemarketplacetoaccomplishitsoverallobjectives.Answer:TRUEDiff:1Objective:1AACSB:Analyticalthinking12)Oneofthefiveforcesofindustryanalysisisunderstandthebargainingpowerofcustomers.Answer:TRUEDiff:1Objective:1AACSB:Analyticalthinking4Copyright©2015PearsonEducation,Inc.13)Highersellingprices,ratherthanuniqueproductsorservices,provideacompetitiveadvantageforthecostleadercompanies.Answer:FALSEExplanation:Lowersellingprices,ratherthanuniqueproductsorservices,provideacompetitiveadvantageforthecostleadercompanies.Diff:1Objective:1AACSB:Analyticalthinking14)Anorganizationwhichusesproductdifferentiationstrategywillchargehigherprices.Answer:TRUEDiff:1Objective:1AACSB:Analyticalthinking15)Thecostleadershipstrategyisforproductsandservicesthataresimilartocompetitor'sproductsandservices.Answer:TRUEDiff:1Objective:1AACSB:Analyticalthinking16)Thecostlea