The What Went Wrong Feature in Chapter 11 Focuses on a Series

question 3

Multiple Choice

The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney under the tenure of then CEO Ron Johnson. According to the feature, Johnson's three most damaging marketing-related mistakes were ________.

• A) no testing of ideas in advance, poor product quality, and poor sales training for employees
• B) reluctance to embrace online sales, a shift from value-based to cost-based pricing, and poor sales training for employees
• C) poor product quality, a total misread of JCPenney's brand, and poor use of social media
• D) Fair and Square Pricing, no testing of ideas in advance, and a total misread of JCPenney's brand
• E) poor use of social media, Fair and Square Pricing, and poor sales training for employees

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Definitions:

Direct Labor-hours

The full amount of labor hours by employees directly contributing to the generation of products or services.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on a standard rate.

Variable Manufacturing Overhead

Costs that vary with the level of production output, such as utilities or raw materials.

Direct Labor-hours

The total time workers spend working directly on manufacturing goods, often used as a basis for allocating manufacturing overhead.