Which of the Following Is NOT a Principal Danger of a Low-Cost

question 7

Multiple Choice

Which of the following is NOT a principal danger of a low-cost position approach?

• A) Substitute goods or services
• B) Technological change
• C) Imitation of production techniques
• D) Changes in consumer tastes
• E) Rivals lowering their costs

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Definitions:

Year 2

A term referring to the second year of a particular time frame, often used in financial and performance analysis.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets (excluding inventories) to its current liabilities.

Year 2

Typically refers to the second year in a given context, such as the second year of operations, a financial plan, or a multi-year study.

Acid-Test Ratio

A financial metric that measures a company's ability to pay its short-term obligations using its most liquid assets, excluding inventory.