1.

________ is an organization's ability to achieve low costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

Select one:

a. Product leadership

b. Strategy

c. Product differentiation

d. Cost leadership

e. The balanced scorecard

2.

The three major influences on pricing decisions are

Select one:

a. Continuous improvement, customer satisfaction, and a dual internal/external focus.

b. Competition, costs, and customers.

c. Variable costs, fixed costs, and mixed costs.

d. Economic, qualitative, and costs.

e. Competition, demand, and production efficiency.

3.

The cost of visiting customers would MOST likely be classified as a

Select one:

a. Customer batch-level cost.

b. Corporate-sustaining cost.

c. Customer output unit-level cost.

d. Distribution-channel cost

e. Customer-sustaining cost.

4.

The production-volume variance

Select one:

a. Equals the rate variance minus the efficiency variance.

b. Only pertains to variable overhead costs.

c. Is not applicable in analysis of inventory costs.

d. Only pertains to fixed overhead costs.

e. Pertains to both fixed and variable overhead costs.

5.

St. Andrews Golf Company used the following data to evaluate their current operating system. The company sells 1 pack of golf balls for $10 per pack. The $10 selling price is also the budgeted selling price.

	Budgeted	Actual
Units Sold	1,000,000	990,000
Variable Costs	$3,000,000	$2,500,000
Fixed Costs	$1,800,000	$1,850,000

What is the actual operating income for St. Andrews Golf Company using the actual results?

Select one:

a. $3,360,000

b. $5,550,000

c. $4,750,000

d. $5,970,000

e. $5,200,000