At Toyota, Its Lexus Designers Attempt to Make Improvements to the Car's

question 223

Multiple Choice

At Toyota, its Lexus designers attempt to make improvements to the car's design each year, even if those changes are minor ones. This process is an example of:

• A) continuous improvement.
• B) concept testing.
• C) product liability.
• D) empowerment.
• E) market testing.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point; it measures the amount by which sales can drop before reaching the break-even point.

Profit-Volume Chart

A graphical representation that shows the relationship between a firm's profits and its volume of sales.

Cost-Volume-Profit Chart

A graphical representation that shows the relationship between a company's costs, sales volume, and profits.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, a measure of how revenue growth translates into growth in operating income.