Jack Wants Customers That Purchase from His Chain of Hardware

question 42

Multiple Choice

Jack wants customers that purchase from his chain of hardware stores to feel they received the best value possible.To accomplish this Jack continually negotiates the best arrangements possible with his suppliers.Which competitive advantage strategy is Jack most focused on?

• A) customer service
• B) cost-based
• C) differentiation
• D) premium product

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Definitions:

Accounts Receivable

Funds that customers owe a company for goods or services already provided but not yet compensated for.

Allowance Method

An accounting technique used to estimate and account for a firm's potentially uncollectible accounts receivable.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.

Uncollectible Receivables

Accounts receivable that a company does not expect to collect and writes off as a bad debt expense.