ACCOUNTING
Multiple Choice
An operating income analysis of Sara McCullough Incorporated revealed the following:
Operating income for 2003 $500,000
Add growth component 25,000
Deduct price-recovery component (15,000)
Add productivity component 60,000
Operating income for 2004 $570,000
McCullough’s operating income gain is consistent with the
a. product differentiation strategy.
b. downsizing strategy.
c. reengineering strategy.
d. cost leadership strategy.
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