Question

Which of the following is an example of a discretionary fixed cost? Property taxes on manufacturing...

Which of the following is an example of a discretionary fixed cost?

Property taxes on manufacturing facilities
Depreciation of manufacturing facilities
Salaries of production supervisors
Donations to charitable organizations

Which of the following is an example of cost leadership as a Porter business strategy?

An online bookseller utilizing efficient scale facilities and overhead cost control.
A manufacturer focused on designing and building corporate jet aircrafts.
A regional beer brewer that caters to local tastes.
A glass manufacturer that creates sophisticated applications for glass and ceramics.

_______________ budgets emphasize the expected cost of planned activities that will be consumed for a process, department, service, product, or other budget objective.

Input/output
Activity-based
Minimum level
Incremental

According to Porter, product or service differentiation involves:

Any changes made to a product or service
Creating something that is perceived as unique and worth a premium price
Shifting sales to growing markets
The use of new technologies in manufacturing

Homework Answers

Answer #1

1.d.donations to charitable organisations.

Donations are always made at discretion and there is no compulsion on any one to donate a particular amount.

rest of the costs are non discretionary.

2.a.An online bookseller utilizing efficient scale facilities and overhead cost control.

cost leadership involves scaling of facilities and controlling of various costs such as variable costs, total costs and overhead costs etc..

3.B.activity based

It is the activity based budget emphasize the expected cost of planned activities that will be consumed for a process, department, service, product or other budget objective.

4.b.Creating something that is perceived as unique and worth a premium price

product differentiation involves creating something that is perceived as unique or rolling out exclusive offerings associated with the brand.

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