Which of the Following Statements Is True of Strategic Analysis

question 55

Multiple Choice

Which of the following statements is true of strategic analysis of operating income?

• A) Change in operating income from one period to any future period can be subdivided into product differentiation, cost leadership, and growth components.
• B) Subdividing the change in operating income to evaluate the success of a strategy has no similarity to the variance analysis.
• C) Management accountants compare actual and budgeted operating performance over the same time periods.
• D) It focuses on differences in individual categories of costs (direct materials, direct manufacturing labor, and overheads).

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Definitions:

Negativity

The tendency to focus on negative elements, expect the worst, and dwell on negative thoughts and feelings.

Optimistic Personality

A personality trait characterized by a general expectation that good things will happen or believing that the future will be favorable because one can control important outcomes.

Oxytocin

A hormone and neurotransmitter often associated with social bonding, reproduction, and childbirth.

Serotonin

Serotonin is a neurotransmitter that plays a key role in regulating mood, appetite, and sleep, among other functions.