Michael Porter's Generic Strategies Model Identifies Four Fundamental Strategies

question 86

Multiple Choice

Michael Porter's generic strategies model identifies four fundamental strategies. Which of the following correctly describes these strategies?

• A) introduction, growth, maturity, and decline
• B) Stars, Cash Cows, Dogs, and Question Marks
• C) growth, differentiation, incremental, and emergent
• D) differentiation, cost leadership, focused differentiation, and focused cost leadership
• E) growth, retrenchment, vertical integration, and stability

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Definitions:

Equivalent Units

Equivalent units are a concept used in cost accounting to express the amount of work done during a period in terms of fully completed units of output.

Materials and Conversion Costs

The sum of raw materials costs and the costs to convert them into finished goods, including labor and overhead.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product or service, including all variable and fixed costs.

Process Cost Accounting

An accounting method used to track and allocate costs of production by process or department for manufacturing goods.