Which Component of Strategy Measures the Changes in Operating Income

question 13

Multiple Choice

Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

• A) the growth component
• B) the price-recovery component
• C) the productivity component
• D) the cost leadership component

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Definitions:

Raw Materials

are the basic, unprocessed materials used as inputs for manufacturing, construction, or other industrial processes.

Secondary Sector

The secondary sector encompasses industries involved in the manufacturing and processing of raw materials into finished goods and products.

Tertiary Sector

The segment of the economy that provides services rather than producing goods, including sectors like retail, education, and health care.

Economist

A professional in the social science discipline of economics, concerned with the analysis of goods and services distribution, consumption, and production.