When analyzing the change in operating income, the strategy component of productivity ________.
A) calculations are similar to the sales-volume variance calculations
B) compares the change in output price with the changes in input prices
C) will report a large positive amount when a company has successfully pursued the cost leadership strategy
D) isolates the change attributed solely to an increase in the quantity of units sold

Question

Quizplus · Accepted Answer

The strategy component of productivity will report a large positive amount when a company has successfully pursued the cost leadership strategy because it reflects the company's ability to reduce costs or improve efficiency, thereby increasing operating income.

When Analyzing the Change in Operating Income, the Strategy Component