Answer the Following Questions Using the Information Below

question 86

Multiple Choice

Answer the following questions using the information below:
Meale Company makes a household appliance with model number X500. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:

-Which strategy is Meale's Corporation pursuing?

• A)Product differentiation, because the units produced and sold increased.
• B)Product differentiation, because total conversion costs decreased.
• C)Cost leadership, because direct material costs per square foot increased.
• D)Cost leadership, because the selling price decreased.

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Definitions:

NTFS

New Technology File System, a file system used by Windows operating systems designed for storing and accessing files on a hard disk with support for large volumes, encryption, and detailed security permissions.

exFAT

A file system type that improves upon FAT32 by having a theoretical maximum file size of 16 EB, maximum volume size of 64 ZB (but 512 TB is the current limit), smaller cluster sizes than FAT32, and an increased number of files allowed in a directory. Created for external storage media such as flash drives and hard drives for saving images/video.

FAT32

A file system that supports hard drives up to 2 TB in size.

SATA

Serial ATA, an interface used to connect ATA hard drives to a computer's motherboard, offering improvements over the older Parallel ATA (PATA) standard, including faster data transfer rates.