When Analyzing the Change in Operating Income, the Strategy Component

question 29

Multiple Choice

When analyzing the change in operating income, the strategy component of price-recovery ________.

• A) calculations are similar to the efficiency-variance calculations
• B) compares the change in output price with the changes in input prices
• C) will report a large positive amount when a company has successfully pursued the cost leadership strategy
• D) isolates the change attributed solely to an increase in production efficiencies