Through Its Inventory Management Technology and Highly Efficient Shipping Practices,IKEA

question 78

Multiple Choice

Through its inventory management technology and highly efficient shipping practices,IKEA is able to keep its inventory expenditure extremely low and to pass these savings on to consumers in the form of low prices.IKEA's strategy is best described as ________.

• A)a focused approach
• B)integrative growth
• C)differentiation
• D)market development
• E)overall cost leadership

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Definitions:

NCI Adjustment

Adjustments made to reflect the share of equity interest in a subsidiary not attributable directly or indirectly to the parent company.

Ownership Interest

A shareholder's stake in a company, represented by the number of shares owned.

Service Fees

Charges levied for the provision of services by one party to another, covering the cost of labor, expertise, or other service-related resources.

Partial Goodwill Method

An accounting approach where goodwill is calculated only for the parent's share of the acquired entity and does not include goodwill attributable to non-controlling interests.