s. Which of the following statements is true of strategic analysis of operating
ID: 2583160 • Letter: S
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s. Which of the following statements is true of strategic analysis of operating income? Management accountants compare actual and budgeted operating performance over the same time periods. o A. Change in operating income from one period to any future period product differentiation, cost leadership, and growth components O B. can be subdivided into It focuses on differences in individual categories of costs (direct materials, direct manufacturing labor, and overheads). C. 0 D. Subdividi ng the change in operating income to evaluate the success of a strategy has no similarity to the variance analysis ID: 12.4-19 16. As a general rule of economics, companies should only produce and sell units as long as_ A. there is customer demand for the product B. the revenue from an additional unit exceeds the cost of producing it O C. there is a relatively small supply of the product when compared to past operating periods D, there is a generous supply of low-cost direct materialsExplanation / Answer
15. B. Change in operating income from one period to any future period can be subdivided into produt differentiation, cost leadership and growth components.
16. B. The revenue from an additional unit exceeds the cost of producing it.
9. B. It describes how an organization can create value for its customers while differentiating itself from its competitors.
10. D. Focus on productivity through efficiency improvements.
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