Which of the Following Is Not an Appropriate Guideline for Developing

question 16

Multiple Choice

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

• A)Variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace.
• B)Variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations.
• C)Variables selected as axes for the map should be highly correlated.
• D)Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members.
• E)Sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

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Definitions:

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate overhead costs to cost objects based on their usage of activities.

Engineering Change

A modification to a product’s design, production process, or materials, usually made to improve functionality or to reduce costs.

Allocation Base

A criterion or standard used to distribute overhead costs among various cost objects.

Direct Labor Dollars

The total cost of wages paid to workers directly involved in manufacturing or producing a company's products.