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Author Question: An operating income analysis of Fast Processing Company revealed the following: Operating income for ... (Read 161 times)

ENagel

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on: Mar 6, 2021

Question 1

________ are the subdivisions of income that management accountants use for the strategic analysis of operating income.
◦ Growth, price-recovery and cost leadership components
◦ Growth, price-recovery and productivity components
◦ Cost leadership, price-recovery and productivity components
◦ Growth, cost leadership and productivity components

Question 2

An operating income analysis of Fast Processing Company revealed the following: 

Operating income for 2017$1,207,000
Add growth component102,000
Deduct price-recovery component(95,000)
Add productivity component90,000
Operating income for 2018$1,304,000
Fast's operating income gain is consistent with the ________.
◦ product differentiation strategy
◦ product leadership strategy
◦ cost differentiation strategy
◦ cost leadership strategy
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by ENagel on Mar 6, 2021

dpost18

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Reply #1 on: Mar 6, 2021
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ENagel

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Reply 2 on: Mar 6, 2021
Gracias!

Dnite

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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