Use the Information Below to Answer the Following Question(s)

question 100

Multiple Choice

Use the information below to answer the following question(s) .Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15.Luke Company presents the following data for the years 1 and 2. Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Referring to Luke Company, which of the following is a measure of the internal business process perspective?

• A)return on investment
• B)market share in the high-end appliance market
• C)timely delivery
• D)production cycle time
• E)number of employees trained in quality management

---

Definitions:

Observers

Individuals or entities that watch or monitor activities, events, or behaviors without directly participating.

Traditional Thinking

Traditional thinking refers to ways of thinking that are rooted in long-established beliefs, customs, or values, often resistant to change.

Assumption

A thing that is accepted as true or as certain to happen, without proof.

Past

A term referring to earlier times or events that have occurred before the present, often used in the context of history, memory, or assessment.