Achieving a cost advantage over its rivals entails ________.
A) concentrating on the primary activities portion of the value chain and outsourcing all support activities.
B) being a first mover in pursuing backward and forward integration, and controlling as much of the industry value chain as possible.
C) performing value chain activities more cost-effectively than its rivals and finding ways to eliminate or bypass some cost-producing activities.
D) minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs.
E) producing a standard product, redesigning the product infrequently, and having minimal advertising.
C) performing value chain activities more cost-effectively than its rivals and finding ways to eliminate or bypass some cost-producing activities.
Success in achieving a low-cost edge over its rivals comes from eliminating and/or curbing "nonessential" activities and/or bypassing some cost-producing activities; for example, outmanaging its rivals in performing essential activities and achieving efficiencies in supply chain management and scale economies from full capacity utilization.
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As indicated by Maslow's need hierarchy, people may respond favorably to
a. appeals that focus on promises of best price and the need to find a bargain. b. appeals that fulfill physiological, security, and safety needs. c. appeals that fulfill social, ego, and self-actualizing needs. d. both b and c.
Which of the following is an example of a situational interview question?
A) If you were aware that a coworker was submitting false data, what would you do? B) What is your ideal work environment? C) What do you predict for the future of our industry? D) Tell me about a time that you dealt with confidential information.
Which of the following metrics is used to calculate the cumulative or total time required to complete a given number of repetitions of a task or produce a given number of unit of an item?
a. unit time coefficient value b. flow time coefficient value c. production time coefficient value d. total time coefficient value
Match each of the following terms with the appropriate definitions.
A. The process of allocating the cost of a natural resource to the period when it is consumed. B. The amount by which the company's value exceeds the value of its individual assets and liabilities. C. Certain nonphysical assets used in operations that confer long-term rights, privileges, or competitive advantages on their owners. D. A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage. E. A measure of a company's effectiveness in using its assets to generate sales. F. A method of depreciation that yields larger expense during the early years of an asset's life and smaller expense in the later years. G. An expenditure that makes a plant asset more efficient or productive. H. The process of systematically allocating the cost of an intangible asset to expense over its estimated useful life. I. Expenditures to keep a plant asset in normal, good operating condition. J. A cost reported as an expense on the current income statement because it does not provide a material benefit in future periods.