The strategic approach to management requires integrative thinking, i.e., the ability to identify and solve problems:

• a. from a cross-functional view.

• b. without using accounting data.

• c. quickly and decisively.

• d. under considerable stress.

Firms have responded to the recent changes in business in all but which one of the following ways?

• a. down-sizing the workforce

• b. developing smaller structures

• c. outsourcing service functions

• d. promoting more effective policies

The competitive strategy in which the firm succeeds by producing at the lowest cost in the industry is termed:

• a. differentiation

• b. cost advantage

• c. price strategy

• d. cost leadership

The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customers is termed:

• a. differentiation

• b. cost advantage

• c. price strategy

• d. cost leadership

Skills or competencies that the firm employs especially well are called:

• a. critical skills.

• b. core competencies.

• c. essential strategies.

• d. competitive factors.

Which one of the following describes the type of information that cost management must provide that is not provided by traditional cost accounting systems?

• a. information of a record keeping nature

• b. reported financial information

• c. reported nonfinancial information

• d. information that address the strategic objectives of the firm

Activities that firms in the industry must perform in the process of taking raw material and converting it into final product are known as:

• a. value activities

• b. conversion activities

• c. production activities

• d. production activities

Well-implemented just-in-time production and purchasing techniques

• a. result in large stockpiles of inventory to keep production running.

• b. strengthen a company' ability to compete in the marketplace.

• c. increase a reliance on long-term consumer forecasts.

• d. reduce a company's competitive edge.

Computer-integrated manufacturing (CIM) plants allow management to do all EXCEPT

• a. create brand recognition.

• b. diagnose the reason for a defect.

• c. access timely and accurate information reading production costs.

• d. respond faster to changes in customer preferences.

____________is/are when a firm compares itself with the best practice of competitors or other comparable organizations.

• a. value chain

• b. supply chain

• c. key success factors

• d. Benchmarking