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Which of the Following Statements Is True of Strategic Analysis

Question 88

Multiple Choice
Which of the following statements is true of strategic analysis of operating income?
A) Change in operating income from one period to any future period can be subdivided into product differentiation, cost leadership, and growth components.
B) Subdividing the change in operating income to evaluate the success of a strategy has no similarity to the variance analysis.
C) Management accountants compare actual and budgeted operating performance over the same time periods.
D) It focuses on differences in individual categories of costs (direct materials, direct manufacturing labor, and overheads).

Which of the following statements is true of strategic analysis of operating income?


A) Change in operating income from one period to any future period can be subdivided into product differentiation, cost leadership, and growth components.
B) Subdividing the change in operating income to evaluate the success of a strategy has no similarity to the variance analysis.
C) Management accountants compare actual and budgeted operating performance over the same time periods.
D) It focuses on differences in individual categories of costs (direct materials, direct manufacturing labor, and overheads) .

Correct Answer:

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