Another word for cost containment is cost minimization.
Indicate whether the statement is true or false
Zero-based budgeting starts with
A) zero, and costs are added
B) budgeted costs
C) placing controls on all expenses
D) a fixed dollar amount
E) controlling finances
A skim strategy for pricing works best when:
A) Customers are not price sensitive
B) Many competitors are located nearby
C) The product offered is easily replicated by competitors
D) Perceived value of the product is very important to the customer
In a feasibility study, the Competitive Set would be defined in which of the following phases?
A) administration phase B) market data analysis and conclusion phase
C) pre-field work phase D) field work phase
When a firm experiences capital rationing,
A) firms should take projects with the highest individual NPV's
B) it can undertake all positive NPV projects that it has at the current time
C) the NPV of projects is irrelevant
D) firms can use the profitability index to select projects that maximize overall value
Grants made by the governing unit to a local school foodservice program to compensate for losses incurred when revenues do not meet expenses are called:
A) revenue assistance grants. B) board budgeted deficits.
C) program lossed. D) income shortfalls.
Travel is on the increase and expected to continue to increase in the coming years due to
A) increased cost of travel B) fewer college graduates
C) longer life span D) lower incomes
Leaving money on the table refers to businesses that price their products:
A) Exactly the same as the reservation price
B) More than the reservation price
C) Without taking the reservation price into account
D) Less than the reservation price
Which of the following is a major criticism of feasibility studies?
A) Excessive demand generator research
B) Too much focus on what the consumer wants in a proposed facility
C) Excessive consumer research
D) Lack of consumer or demand generator research
Unfortunately, employee theft and fraud is high, partly due to
A) poor morals
B) social problems
C) inappropriate behavior
D) weak rationalizing
E) opportunity and lax controls
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