Porter's Four Generic Business Strategies Are __________, Cost Focus, Differentiation

question 166

Multiple Choice

Porter's four generic business strategies are __________, cost focus, differentiation focus, and cost leadership.

• A)exclusivity
• B)quality focus
• C)differentiation
• D)geographic span
• E)service leadership

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost expected to be paid, reflecting changes in price.

Raw Materials Price Variance

A measure of the difference between the actual cost of raw materials and the expected (standard) cost.

Labor Efficiency Variance

The difference between the budgeted and actual hours worked, multiplied by the standard labor rate, indicating efficiency in labor usage.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead rate multiplied by the actual activity level.