Strategic Management & Performance Flashcards
7 cards from real AICPA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Management & Performance flashcards as text
Which costing method is most useful for strategic pricing decisions because it includes all costs in the value chain?
Answer: Life-cycle costing
Life-cycle costing accumulates costs across design, development, production, and post-sale support to inform long-term pricing strategy.
In a SWOT analysis, which combination represents an aggressive growth strategy?
Answer: Strengths + Opportunities (SO strategy)
An SO strategy leverages internal strengths to capitalize on external opportunities, representing the most aggressive growth approach.
Under the Theory of Constraints, what is a 'bottleneck'?
Answer: The resource that limits overall system throughput
In the Theory of Constraints, a bottleneck (or constraint) is the limiting factor that determines the maximum output of the entire system.
A company implements a Kaizen program. This primarily focuses on:
Answer: Continuous incremental improvements in processes and quality
Kaizen is a Japanese philosophy of continuous, incremental improvement involving all employees to enhance efficiency and quality over time.
When evaluating a strategic investment using the Balanced Scorecard, which perspective would consider customer loyalty and market share?
Answer: Customer
The Customer perspective measures outcomes such as customer satisfaction, retention, acquisition, and market share that drive long-term financial results.
Which of the following describes 'competitive parity' in the context of resource-based view (RBV)?
Answer: A firm's resources are similar to those of competitors, providing no advantage
Competitive parity means a firm's resources are valuable but not rare or inimitable, resulting in performance equal to but not above competitors.
Which strategic performance measure directly links employee behavior to shareholder value creation?
Answer: Economic value added (EVA)
EVA aligns managerial decisions with shareholder interests by measuring the surplus return earned above the full cost of capital employed.