68 Chapter 3 Multiple Choice 1. The strategic approach to management requires integrative thinking, i.e., the ability to identify and solve problems: a. from a cross-functional view. c. quickly and decisively. b. without using accounting data. d. under considerable stress. 2. Firms have responded to the recent changes in business in all but which one of the following ways? a down-sizing the workforce b. developing smaller structures c. outsourcing service functions d. promoting more effective policies 3. The competitive strategy in which the firm succeeds by producing at the lowest cost in the industry is termed: a. differentiation b. cost advantage c. price strategy d. cost leadership 4. The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customers is termed: a. differentiation b. cost advantage c. price strategy d. cost leadership 5. Skills or competencies that the firm employs especially well are called: a. critical skills. b. core competencies. c. essential strategies. d. competitive factors. 6. Which one of the following describes the type of information that cost accounting systust provide that is not provided by traditional cost a. information of a record keeping nature b. reported financial information reported nonfinancial information d. information that address the strategic objectives of the firm 7. Activities that firms in the industry must perform in the process of taking raw material and converting it into final product are known as: a. value activities b. conversion activities c. production activities d. production activities
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The text mentions "core competencies differentiation" and "cost advantage differentiation" as two possible competitive strategies. This means that the firm can succeed by either differentiating its products or services based on unique capabilities or by offering Show more…
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