Competitive Priorities Define the Dimensions on Which Companies Should Excel

question 65

Multiple Choice

Competitive priorities define the dimensions on which companies should excel in producing their products or services.Which one of the following statements is TRUE?

• A)A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation.
• B)It is impossible for a firm to improve cost and quality simultaneously.
• C)A firm offering little customization cannot compete simultaneously on the dimension of consistent quality.
• D)A firm that competes on the dimension of customization tends to have operating systems that are inflexible.

---

Definitions:

August

The eighth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) cost allocated to production, based on the standard variable overhead rate.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, used to measure the efficiency and cost management in labor use.