Which of the Following Demonstrates a Growth Strategy for the Creation

question 5

Multiple Choice

Which of the following demonstrates a growth strategy for the creation of shareholder wealth?

• A) Reducing salary expense of inside sales representatives by creating a self-service web site.
• B) Improving the operating cash cycle through Just-In-Time raw materials delivery from suppliers.
• C) Instituting recycling and recovery processes to reduce waste and cut costs.
• D) Replacing old equipment with newer equipment providing higher quality and yield.
• E) Creating a product development process that ensures new products make up a specified proportion of the total product line.

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Definitions:

Manufacturing Budget

A planned budget for manufacturing operations, detailing the projected costs associated with production.

Traditional Budgeting

An approach to budgeting focusing on incremental changes to the previous year's budget rather than starting from zero.

Activity-Based Budgeting

A budgeting approach that considers the underlying activities and costs as the bases for budgets, focusing on cost drivers.

Non-Value-Added Activities

Processes or actions that do not add value to the product or service from the customer's perspective, potentially leading to unnecessary costs.