Question : Objective 12.4 1) Which component of strategy measures the changes in : 1211783

Objective 12.4

1) Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

A) the growth component

B) the price-recovery component

C) the productivity component

D) the cost leadership component

2) ________ are the subdivisions of income that management accountants use for the strategic analysis of operating income.

A) Growth, price-recovery and cost leadership components

B) Growth, price-recovery and productivity components

C) Cost leadership, price-recovery and productivity components

D) Growth, cost leadership and productivity components

3) Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output?

A) the growth component

B) the price-recovery component

C) the productivity component

D) the cost leadership component

4) When analyzing the change in operating income, the strategy component of growth ________.

A) calculations are similar to the selling-price variance calculations

B) isolates the change attributed solely to an increase in market share

C) isolates the change attributed solely to an increase in industry growth

D) isolates the change attributed solely to an increase in the quantity of units sold

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 strategy

D) isolates the change attributed solely to an increase in production efficiencies

6) When analyzing the change in operating income, the strategy component of productivity ________.

A) calculations are similar to the sales-volume 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 strategy

D) isolates the change attributed solely to an increase in the quantity of units sold

7) Which of the following statements is true of strategic analysis of operating income?

A) Management accountants compare budgeted operating performance over two different periods.

B) Management accountants compare actual and budgeted operating performance over the same time

periods.

C) Management accountants compare actual operating performance of one year and budgeted operating performance of another year.

D) Management accountants compare actual operating performance over two different periods.

8) When analyzing the change in operating income, the strategy component of price-recovery will increase when ________.

A) capacity is reduced

B) market share is increased

C) selling prices are increased

D) more units are sold

9) When analyzing the change in operating income, the strategy component of productivity will increase when ________.

A) capacity is reduced

B) quality is enhanced

C) selling prices are increased

D) more units are produced and sold

10) Successful implementation of a cost leadership strategy will result in ________.

A) large favorable growth and price-recovery components

B) large favorable price-recovery and productivity components

C) large favorable productivity and growth components

D) only a large favorable growth component