Which of the following actions can enable companies to gain a cost competitive advantage?
a. Removing frills from products
b. Increasing marginal customers
c. Eliminating reverse engineering efforts
d. Developing additional exclusive functional departments
ANSWER: a
Marketers can lower costs by removing frills and options from a product or service. Southwest Airlinesâ€"for exampleâ€"offers low fares, but no seat assignments or meals.
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When preparing the operating budgets for a manufacturing company, the manufacturing overhead budget ________
A) represents the last period cost to be considered B) only includes variable manufacturing overhead C) only computes the budgeted overhead cost for the year D) includes costs that are projected by the cost accountant and the production manager
Refer to Camey Construction. How much should Camey recognize as Accounts Receivable at the end of Year 1 assuming the use of the percentage-of-completion method?
A) $500,000 B) $1,000,000 C) $1,500,000 D) $2,000,000