The Idea Behind Benchmarking and Best Practices Is to

question 59

Multiple Choice

The idea behind benchmarking and best practices is to

• A)identify which companies are the best performers of a strategically relevant activity and then copy their methods exactly.
• B)search the world for a company that performs a strategically relevant task or value chain activity at the lowest possible cost and then use business process reengineering techniques to try to meet or beat the costs of the world's low-cost performer of that activity.
• C)perform each activity in the industry value chain according to standard industry practice and then regularly benchmark the company's performance to see if it is actually achieving the industry standard.
• D)identify companies that are the best performers of an activity and then adapt their practices to fit the company's own specific circumstances and operating requirements.
• E)determine whether a company has a world-class value chain.

Understand the role of cost information in pricing decisions under both costing methods.

Comprehend the impact of production levels on income under both costing methods.

Recognize the significance of fixed costs in pricing and acceptance of special orders.

Understand how managerial incentives might drive production decisions under absorption costing.

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Definitions:

Muscular Movements

The actions and activities produced by the contraction and relaxation of muscle groups in the body, allowing for motion, posture maintenance, and the manipulation of objects.

Corresponding Emotion

An emotional response that is directly related to, or caused by, a specific event, action, or thought.

Facial-Feedback Hypothesis

The theory that suggests the act of expressing a facial emotion can cause the emotional experience itself, such as smiling leading to feelings of happiness.

Positive Feelings

Emotions and sentiments that are pleasant or affirmative, such as happiness, joy, or satisfaction.