Assessments of How a Diversified Company's Subsidiaries Compare in Competitive

question 125

Multiple Choice

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as

• A) vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates.
• B) relative market share, ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and ability to benefit from strategic fits with sister businesses.
• C) the appeal of its strategy, relative number of competitive capabilities, the number of products in each businesses product line, which businesses have the highest/lowest market shares, and which businesses earn the highest/lowest profits before taxes.
• D) the ability to hurdle barriers to entry, value chain attractiveness, and business risk.
• E) cost reduction potential, customer satisfaction potential, and comparisons of annual cash flows from operations.

Calculate total manufacturing overhead costs assigned to specific products using ABC.

Calculate product margins under ABC.

Identify the impact of different cost pools on product costs and margins.

Understand how ABC allocates costs to customer-related activities.

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Definitions:

Defense Reaction

A psychological or physiological response to a perceived threat, aimed at safeguarding an individual.

Aggressive Behaviors

Actions or attitudes that are hostile, destructive, or violent towards others or oneself.

Inflated Doll

A doll that is designed to be filled with air or gas and expand, often used as a toy or decorative object.

Bandura's Study

Refers to the series of experiments by Albert Bandura that demonstrated the role of observational learning or social learning, especially the Bobo doll experiment that highlighted how children learn aggression through imitation.