Which of the Following Is an Advantage of First Movers

question 59

Multiple Choice

Which of the following is an advantage of first movers?

• A) They are not prone to mistakes.
• B) They bear lower pioneering costs than later entrants do.
• C) They only invest in the latest technology.
• D) They do not run the risk of building the wrong resources as they are highly customer-focused.
• E) They have an opportunity to exploit network effects and positive feedback loops.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Fiscal Year

A one-year period that companies use for accounting and financial reporting purposes, which may or may not align with the calendar year.

Product Cost

refers to the total expense incurred to manufacture a product or deliver a service, encompassing direct labor, materials, and overhead costs.

Drill Bits

Tools used for creating cylindrical holes, often seen in various sizes and made from different materials suitable for specific drilling needs.