Question 1

What does the breakeven point mean for managers?

Accepted Answer

For managers,breakeven point (BEP)is considered to be the minimum acceptable position for the business in the short term.Operating below the breakeven point means that the organization is operating in a loss position and,therefore,would need to draw upon its cash reserves and/or access to external cash resources (debt financing or equity financing)in order to assist in covering its expenses.If the organization did not possess sufficient cash reserves,and did not have access to additional cash from external sources,the end result could be insolvency and business closure.

Question 2

All of the following are key elements of understand the configuration of the cost base,EXCEPT:

Accepted Answer

A)  identify the various sacrifices which the organization will face 
B)  identify the various costs which the organization will face 
C)  the percentage impact which key cost areas have on the total cost base of the organization 
D)  the degree of controllability which managers have, in the near term, on costs being incurred` 
E)  the nature of the various costs which the organization will face 
A)  identify the various sacrifices which the organization will face 
B)  identify the various costs which the organization will face 
C)  the percentage impact which key cost areas have on the total cost base of the organization 
D)  the degree of controllability which managers have, in the near term, on costs being incurred` 
E)  the nature of the various costs which the organization will face A

Question 3

Phil asks you to calculate the break-even point for his firm.You respond that you will need the values for all assets and liabilities.

Accepted Answer

A) True 
 B)False  False

Question 4

The relationship between variable and fixed costs impacts the degree of control which a management team has over its cost base.

Accepted Answer

A) True 
 B)False

Question 5

The sell pressures which will impact the cost base is an area of focus for managers to develop a good understanding of an organization's cost base.

Accepted Answer

A) True 
 B)False

Question 6

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a high-low pricing strategy.

Accepted Answer

A) True 
 B)False

Question 7

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a ________ strategy.

Accepted Answer

A)  high-low pricing. 
B)  penetration. 
C)  bundling. 
D)  skimming. 
E)  discounting. 
A)  high-low pricing. 
B)  penetration. 
C)  bundling. 
D)  skimming. 
E)  discounting.

Question 8

Skimming pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

Accepted Answer

A) True 
 B)False

Question 9

A type of indirect costs,called committed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

A) True 
 B)False

Question 10

Which type of cost provides managers with more control and why?

Accepted Answer

In general,the more the cost base is com

Question 11

The nature of the various costs which the organization will face is a key element of understand the configuration of the cost base.

Accepted Answer

A) True 
 B)False

Question 12

Costs incurred regardless of the number of units of a product that are produced or sold are called variable costs.

Accepted Answer

A) True 
 B)False

Question 13

A skimming pricing strategy establishes a high price in order to earn the highest possible profit while there is little competition.

Accepted Answer

A) True 
 B)False

Question 14

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the full contribution point.

Accepted Answer

A) True 
 B)False

Question 15

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a penetration strategy.

Accepted Answer

A) True 
 B)False

Question 16

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the penetration price strategy.

Accepted Answer

A) True 
 B)False

Question 17

Demand-based pricing is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

A) True 
 B)False

Question 18

An organization's cost base is made up of the total costs associated with delivering the organization's products or services to the marketplace.

Accepted Answer

A) True 
 B)False

Question 19

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a bundling strategy.

Accepted Answer

A) True 
 B)False

Question 20

What are variable costs and provide an example.

Accepted Answer

Variable Costs (also referred to as dire

What does the breakeven point mean for managers?

All of the following are key elements of understand the configuration of the cost base,EXCEPT:

Phil asks you to calculate the break-even point for his firm.You respond that you will need the values for all assets and liabilities.

The relationship between variable and fixed costs impacts the degree of control which a management team has over its cost base.

The sell pressures which will impact the cost base is an area of focus for managers to develop a good understanding of an organization's cost base.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a high-low pricing strategy.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a ________ strategy.

Skimming pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

A type of indirect costs,called committed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Which type of cost provides managers with more control and why?

The nature of the various costs which the organization will face is a key element of understand the configuration of the cost base.

Costs incurred regardless of the number of units of a product that are produced or sold are called variable costs.

A skimming pricing strategy establishes a high price in order to earn the highest possible profit while there is little competition.

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the full contribution point.

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a penetration strategy.

Demand-based pricing is the process used to determine the profitability of a product at various levels of sales.

An organization's cost base is made up of the total costs associated with delivering the organization's products or services to the marketplace.

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a bundling strategy.

What are variable costs and provide an example.

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Ethics and Corporate Social Responsibility

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters

Exam 12: Technology and Operations Management

What does the breakeven point mean for managers?

All of the following are key elements of understand the configuration of the cost base,EXCEPT:

Phil asks you to calculate the break-even point for his firm.You respond that you will need the values for all assets and liabilities.

The relationship between variable and fixed costs impacts the degree of control which a management team has over its cost base.

The sell pressures which will impact the cost base is an area of focus for managers to develop a good understanding of an organization's cost base.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a high-low pricing strategy.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a ________ strategy.

Skimming pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

A type of indirect costs,called committed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Which type of cost provides managers with more control and why?

The nature of the various costs which the organization will face is a key element of understand the configuration of the cost base.

Costs incurred regardless of the number of units of a product that are produced or sold are called variable costs.

A skimming pricing strategy establishes a high price in order to earn the highest possible profit while there is little competition.

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the full contribution point.

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a penetration strategy.

Demand-based pricing is the process used to determine the profitability of a product at various levels of sales.

An organization's cost base is made up of the total costs associated with delivering the organization's products or services to the marketplace.

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a bundling strategy.

What are variable costs and provide an example.

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Ethics and Corporate Social Responsibility

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters