Exam 11: Strategic Cost Management

Exploiting internal linkages involves the assessment of management reliability.

Strategic cost management is the identification of strategies to develop a competitive advantage.

The stage during which the product loses market acceptance is called the:

Dot Company sells a product for $225 per unit. Its market share is 20 percent. The marketing manager feels that the market share can be increased to 30 percent with a reduction in price to $195. The product is currently earning a profit of $36 per unit. The president of Dot Company feels that the $36 profit per unit must be maintained. What is the target cost per unit?

Which of the following stages in the product life cycle focuses on obtaining a foothold in the market from a marketing viewpoint?

The factor(s) that describe the relationships of a firm's value chain activities that are performed with its suppliers and customers is(are) called:

Amber Products Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas: Activity Area Cost Driver and Rate Order cost \ 150 per purchase order Defective units \ 160 per unit internal failure costs Delivery trips \ 4 per delivery mile Carrying cost \ 2 per order The following supplier information is given: X1 Y2 Z3 Materials units needed 60,000 60,000 60,000 Actual purchase price \ 6.00 \ 5.00 \4 .00 Number of purchase orders 25 20 10 Number of defects 7 15 0 Number of deliveries 25 35 15 What is the cost of supplier Z1?

The last link of the internal value chain is

When a computer manufacturing company addresses supplier production problems, it is focusing on

A strategy to provide the same or better value to customers at a lower cost than offered by competitors to achieve competitive advantage is:

the traditional approach of permitting defects to occur as long as they do NOT exceed a certain level is called

Acceptable quality level (AQL) allows defects to occur within predetermined parameters.

Which of the following manufacturing systems is a demand-pull system?

Which of the following is a trait of a JIT system?

Blue Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas: Activity Area Cost Driver and Rate Order taking \ 100 per purchase order Sales visits \ 50 per visit Delivery vehicles \ 1 per delivery mile The following customer information is given: Units sold 100,000 80,000 60,000 List price \ 50 \ 50 \5 0 Actual sal es price \ 45 \ 48 \5 0 Number of purchase orders 30 20 10 Number of sales visits 6 5 3 Number of delivery miles 100 80 60 Which customer is most profitable?

The approach to quality control which attempts to achieve zero defects is called:

Which of the following manufacturing costs is assigned through allocation under just-in-time (JIT) manufacturing environment?

Life-cycle cost management emphasizes

The stage during which a product loses market acceptance is called the __________ stage.

Dot Company sells a product for $225 per unit. Its market share is 20 percent. The marketing manager feels that the market share can be increased to 30 percent with a reduction in price to $195. The product is currently earning a profit of $36 per unit. The president of Dot Company feels that the $36 profit per unit must be maintained. What is the original cost per unit?