Strategy, Balanced Scorecard, and Strategic Profitability An

Which of the following are two generic strategies described in the text that a company can use?

• Growth and product differentiation

• Price recovery and growth

• Product differentiation and cost leadership

• Cost leadership and price recovery

Reengineering is a key element in

• cost leadership strategy.

• price-recovery strategy.

• product-differentiation strategy.

• productivity measures.

Which of the following is the most critical aspect of a successful reengineering process?

• Eliminating unnecessary activities and tasks

• Developing employee skills

• Changing roles and responsibilities

• Working across functional lines to focus on the entire business process

The balanced scorecard gets its name from

• an attempt to provide short-run financial results with long-run financial strategies.

• an attempt to balance product quality and cost reduction.

• an attempt to match a company’s own capabilities with the opportunities in the marketplace to accomplish an overall objective.

• an attempt to balance financial and nonfinancial performance measures to evaluate both short-run and long-run performance in a single report.

Creating value for customers describes which one of the four perspectives of the balanced scorecard?

• Financial perspective

• Customer perspective

• Internal-business-process perspective

• Learning-and-growth perspective

The analysis used for evaluating the success of a strategy through changes in operating income components uses actual results of the current year compared to

• budgeted results for the current year.

• actual results for the previous year.

• target amounts for the current year.

• budgeted results for the previous year.

The growth in market share is used in calculating the net income effect of

• industry growth.

• product differentiation.

• cost leadership.

• either cost leadership or product differentiation, depending upon the strategy chosen.

The following strategic analysis of profitability was prepared for the Corum Company (see the pics)

The market growth rate in the industry was 9 percent in 2009. Sales in 2009 were 17,000 units at $25 each. Corum sold 15,000 units at a unit-selling price of $20 in 2008.

The effect of the industry market size factor for Corum Company in 2009 was

• $5,200.

• $10,800.

• $12,240

• $13,500.

A discretionary cost can best be described by which of the following statements?

• The level of uncertainty of deviations of actual amounts from expected results is greater for discretionary costs than for engineered costs.

• Discretionary costs result from cause-and-effect relationships between outputs and inputs.

• Discretionary costs are added to or subtracted from in a step fashion.

• Discretionary costs are variable costs incurred in relation to capacity issues.

Many companies have tried to downsize in an attempt to eliminate

• inefficiencies and waste associated with non-value-added costs

• their unused capacity.

• costs associated with both direct and indirect labor.

• costs through using information technology.