Consider Using the Decreasing Options Technique (DOT)when

question 13

Multiple Choice

Consider using the Decreasing Options Technique (DOT) when

• A)the group is small,with no more than seven members.
• B)members cannot generate many ideas or solutions.
• C)the group wants to hear from expert and influential members.
• D)the group wants to ensure equal opportunities for input by all members.
• E)the group has plenty of time to discuss multiple or controversial ideas.

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Definitions:

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the allowable cost of manufacturing the product is calculated by subtracting a desired profit margin.

Cost-Reduction Emphasis

A strategic focus of an organization on identifying and implementing ways to decrease expenses and costs to improve profitability.

Differential Analysis

The process of comparing the costs and benefits of alternative decisions or investments to determine the best option.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.