Which of the Following Best Explains Why a Company Would

question 42

Multiple Choice

Which of the following best explains why a company would adopt an undifferentiated targeting strategy?

• A)to more efficiently focus on customer relationship management
• B)to remove the need for disintermediation
• C)to move a product to the next stage of its product life cycle
• D)to take advantage of economies of scale
• E)to reach the underserved "bottom-of-the-pyramid" consumers

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Definitions:

Plantwide Predetermined Rate

A single overhead rate calculated by dividing total estimated overhead costs by an expected base for the entire plant.

Machine-Hours

A measure of production output or operation, indicating the total hours machines are running in the manufacturing process.

Markup

The surcharge applied to the original cost of items to compensate for overhead expenses and secure earnings.

Plantwide Predetermined Rate

A single overhead rate calculated using the total estimated overhead costs divided by an estimated allocation base for an entire factory or plant.