Exam 11: Strategic Cost Management

According to the authors, 90 percent or more of a product's life-cycle costs are determined during

Activities required to design, develop, produce, market, distribute, and service a product are known as

The strategy to create better customer value for the same or lower cost than competitors or creating equivalent value for lower cost than offered by competitors is called:

The strategy which involves choosing among alternative strategies with the goal of selecting a strategy or strategies that provides a company with reasonable assurance of long-term growth and survival is called:

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using allocation?

Strategic cost management emphasizes the importance of an external focus and the need to recognize and exploit internal and external linkages.

Which of the following is NOT a stage of the marketing viewpoint of the product life cycle?

The industrial value-chain analysis

Loganberry Corporation sells a product for $400 per unit. Its market share is 22 percent of the units sold. The marketing manager feels that the market share can be increased to 28 percent of the units sold with a reduction in price to $340. The product is currently earning a profit of $64 per unit. The president of Loganberry Corporation feels that his company needs to maintain the same profit level per unit. The market share consists of $4,000,000 (10,000 units). Required: a. How many units does Loganberry Corporation currently sell of the product? b. What is the target price per unit? c. What is the original cost per unit? d. What is the target cost per unit?

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

Figure 11-2 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: -Refer to Figure 11-2. What is the profitability of customer BY?

Which of the life-cycle viewpoints is the cost-oriented viewpoint?

Which of the following is NOT a stage of the consumable life-cycle viewpoint?

In JIT purchasing, materials are usually at warehouse long before they are needed.

Which of the following are true about total quality control?

Value-chain analysis is identifying and exploiting internal and external linkages to achieve strong strategic positions.

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

JIT manufacturing differs from traditional manufacturing in all of the following ways EXCEPT

The manufacturing which reduces inventory levels because production is geared to demand is called:

Which of the life-cycle viewpoints is the revenue-oriented viewpoint?