As Long as Prices Continue to Rise Faster Than Costs

question 37

True/False

As long as prices continue to rise faster than costs in an inflationary environment, reported profits will generally continue to rise.

---

Definitions:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Multiple Products

The strategic offering of a variety of products by a business to meet diverse customer needs, expand market reach, and reduce risk.

Tailored Sourcing

A procurement strategy that involves customizing the sourcing approach to fit specific product requirements, supplier capabilities, or market conditions.

Postponement

Postponement is a supply chain strategy that involves delaying the final assembly or customization of a product until the latest possible time to reduce inventory costs and respond to customer demand more precisely.