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

question 97

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.
-Which of the following is a measure of the internal business 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

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Definitions:

Bond Issue

A bond issue refers to the process by which a corporation or government raises funds by issuing bonds to investors, which are debt securities promising to repay the principal along with interest.

Bond Discount

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.

Premium on Bonds

The amount by which the price paid for a bond exceeds its face value, typically because the interest rate it pays is higher than the market rate.

Maturity

The date on which a debt or other borrowing is due to be repaid in full, or when an investment reaches its full value.