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Cornerstones Cost Management 2nd Edition By Hansen Mowen Test Bank
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Cornerstones Cost Management 2nd Edition By Hansen Mowen – Test Bank

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  1. 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:
    A.Competitive advantage
    B. Strategic cost management
    C. Strategic decision making
    D. Customer value

 

  1. 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:
    A.Strategic decision making
    B. Competitive advantage
    C. Strategic cost management
    D. Total product

 

  1. A competitive advantage has been established when
    A.customers see the variation as important and the value added to the customer exceeds the cost of providing differentiation.
    B. a high-cost strategy increases customer value by minimizing customer sacrifices.
    C. a low-profit item is dropped from the product line.
    D. both a and b.

 

  1. The difference between what a customer receives and what the customer gives up is called:
    A.Customer value
    B. Strategic cost management
    C. Competitive advantage
    D. Strategic decision making

 

  1. The total product, the complete range of benefits that a customer receives from a purchased product include(s):
    A.intangible benefits
    B. activity
    C. tangible benefits
    D. both a and c

 

  1. The use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage is called:
    A.Strategic decision making
    B. Competitive advantage
    C. Strategic cost management
    D. Customer value

 

  1. When a computer company maintains the internal storage space for a lower price, it is following a
    A.focusing strategy.
    B. cost leadership strategy.
    C. differentiation strategy.
    D. strategic positioning strategy.

 

  1. When a computer company increases the internal storage space for the same price, it is following a
    A.focusing strategy.
    B. low-cost strategy.
    C. differentiation strategy.
    D. strategic positioning strategy.

 

  1. When a computer company targets customers in the South, it is following a
    A.focusing strategy.
    B. low-cost strategy.
    C. differentiation strategy.
    D. strategic allocation strategy.

 

  1. When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a
    A.focusing strategy.
    B. low-cost strategy.
    C. differentiation strategy.
    D. strategic positioning strategy.

 

  1. The relationships among activities that are performed with a firm’s portion of the value chain is(are) called:
    A.Internal linkages
    B. External linkages
    C. Industrial value chain
    D. Both a and b

 

  1. The industrial value-chain analysis
    A.recognizes only complex linkages within the firm.
    B. is not compatible with differentiation strategies.
    C. determines a linked set of value-creating activities.
    D. requires a firm to operate across the entire value chain.

 

  1. 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:
    A.Internal linkages
    B. External linkages
    C. Industrial value chain
    D. Both a and b

 

  1. When a computer manufacturing company addresses supplier production problems, it is focusing on
    A.external linkages.
    B. internal linkages.
    C. a differentiation strategy.
    D. a cost leadership strategy.

 

  1. The structural and executional factors that determine the long-term cost structure of an organization are called:
    A.Organizational activities
    B. Operational cost drivers
    C. Operational activities
    D. Organizational cost drivers
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