Activity-based costing:
A. is an accounting system that assigns a company's expenses to whichever activity in a company's value chain is responsible for creating the cost.
B. involves using benchmarking techniques to develop cost estimates for the value chain activities of each major rival.
C. is a powerful tool for identifying the different pieces of a company's value chain and classifying them as primary activities and support activities.
D. involves determining which value chain activities represent variable costs and which represent fixed costs.
E. is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals.
Answer: is an accounting system that assigns a company's expenses to whichever activity in a company's value chain is responsible for creating the cost.
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Management Chapter 4
- Which of the following is NOT accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?
- Which of the following is NOT part of the task of identifying the strategic issues and problems that merit front-burner managerial attention?
- Identifying the strategic issues and problems that merit front-burner managerial attention:
- Identifying the strategy-related issues and problems that company managers need to address and resolve for the company to be more financially and competitively successful entails all of the following EXCEPT:
- Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because:
- A company's competitive strength scores pinpoint its strengths and weaknesses against rivals and:
- Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate:
- The company with the highest rating on a given measure has an implied competitive edge on that specific measure, with the size of its edge:
- Which one of the following is NOT something that can be learned from doing a competitive strength assessment?
- Which one of the following is an accurate interpretation of the scores that result from doing a competitive strength assessment?
- Quantitative measures of a company's competitive strength:
- Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness:
- A higher company's overall weighted strength rating does not signal:
- In a weighted competitive strength analysis, each strength measure is assigned a weight based on:
- In a weighted competitive strength assessment, the sum of the weights should add up to:
- Competitive strength can be determined by assigning measures based on perceived importance because:
- Assigning a weight to each measure of competitive strength assessment is generally analytically superior because:
- Understanding where the company is competitive requires:
- The value of doing competitive strength assessment is to:
- The road to competitive advantage begins with management's efforts:
- When companies engage in value-creating activities, they do so by:
- Resource analysis is a tool:
- To build a competitive advantage by out-managing rivals in performing value chain activities, a company must:
- For a company to translate its performance of value chain activities into competitive advantage, it must:
- A company's value-creating activities can offer a competitive advantage in one of two ways: