The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) ________ for these companies.
A. clear mission statement
B. diversification strategy
C. operational advantage
D. sustainable competitive advantage
E. strategic marketing plan
Answer: D
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Capital expenditures are costs that are charged to Stockholders' Equity accounts
Indicate whether the statement is true or false
Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?
A. The efficiency and productivity of the production process and workers will change to reflect manufacturing advances. B. Product prices will remain constant as volume varies within the relevant range. C. Costs can be categorized as fixed, variable, or semivariable. D. Total fixed costs remain constant as activity changes. E. Unit variable cost remains constant as activity changes.
As vice president of sales, you would like to send company personnel a good-news message about the company's first quarter sales results. Which of the following would be the best subject line for your message?
a. Good News! b. FYI c. Sales Figures d. First Quarter Sales Exceed Projections
Safety Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $36 each. The company is considering making the switches internally and has conducted a study to determine the costs involved. The costs below are projected annual production costs: Unit-level material cost$6? Unit-level labor cost$5? Unit-level overhead$4? Batch-level cost (5000 units per batch)$21,000? Product-level supervisory salaries$45,500? Allocated facility-level costs$36,000? Assume that the company needs 10,000 of the switches, which would be produced in two batches. Assume also that the company will still be operating within the relevant range. If Safety decides to make the parts under these conditions, the total relevant
costs will be: A. $205,500. B. $273,500. C. $216,500. D. $252,500.