Which Purchasing Strategy Tends to Be Associated with a Low-Cost-Differentiation

question 18

Multiple Choice

Which purchasing strategy tends to be associated with a low-cost-differentiation strategy?

• A)Purchase at low costs through quantity discounts; operate storage and warehouse facilities and control inventory efficiently.
• B)Purchase high-quality inputs,even if they cost more; conduct storage,warehouse,and inventory activities with extensive care,even if costs are higher.
• C)Purchase high-quality inputs,but only if costs are low; conduct storage,warehouse,and inventory activities with care,but only if costs are relatively low.
• D)None of the above.

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Definitions:

Retirement Fund

A financial reserve that accumulates through savings and investments, intended to support individuals financially during their retirement years.

Compounded Monthly

Interest calculation method where interest is added to the principal sum at the end of each month, and future interest is calculated on the new total.

Years

Units of time that represent the period it takes for the Earth to complete one full orbit around the sun, typically used to measure durations or ages.

Interest

The price paid for acquiring funds, often quoted as a yearly rate of the total amount borrowed.