Correct Answer: C

Choice "c" is correct. In the extended supply chain stage of supply chain management, integration moves external to the firm to involve those outside the firm who are able to work as a unified team in an attempt to obtain slow, profitable growth. Choice "a" is incorrect. In the cross-functional teams stage of supply chain management, the firm's management will turn its attention to consolidation of the various departments that make up operations in order to solve the firm's problems, and the focus will be on customer service. Choice "b" is incorrect. In the integrated enterprise stage of supply chain management, the firm's management will move away from simple consolidation of its operations to an internally-integrated supply chain, which all work together towards the main business issue of the cost of customer service. Choice "d" is incorrect. In the supply chain communities stage of supply chain management, the extended supply chain forms a single competitive entity with a synchronized supply chain and a complex system of networks.

Correct Answer: C

Choice "c" is correct. One of the consequences of greater government regulation of certain products is the

resulting higher cost to the consumer when the government imposes health and safety regulations on

certain products it is likely that expenses will increase and that the added costs will be passed on to

consumers in terms of higher prices. The total output for the product may decrease.

Choice "a" is incorrect. Since the price goes up, consumption will decrease.

Choice "b" is incorrect. The price can be expected to increase (see choice "c" above).

Choice "d" is incorrect. Since the price goes up, supply goes down.

Correct Answer: A

Choice "a" is correct. Setting the overall goals of the firm is usually the starting point in strategic planning. Choice "b" is incorrect. The organizational structure will be partially determined by the goals of the firm. Choice "c" is incorrect. Recent annual budgets may be reviewed as an aid in planning, but they are not the first consideration in strategic planning. In fact, they often are ignored. Choice "d" is incorrect. Being an industry leader may be or become a goal of the firm, but that would be determined during the strategic planning process.

Correct Answer: A

Choice "a" is correct. Absorption costs are not relevant in situations when management must decide on accepting or rejecting one-time-only special orders, and where there is sufficient idle capacity. All of the following costs are relevant in such situations:

B. Direct costs

C. Variable costs

D. Incremental costs

Correct Answer: D

Choice "d" is correct. 20.0 percent cost of equity capital by using the discounted cash flow model.