By Focusing on a Niche, and Customizing the Offering to That

question 46

True/False

By focusing on a niche, and customizing the offering to that segment, a differentiated company can often outsell differentiated rivals that target a broader market.

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Definitions:

Costing Approach

A method or system used to calculate the cost of a product, project, or service for accounting, financial, and strategic planning.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Variable Costs

Financial outlays that directly correspond to the volume of production or sales, encompassing costs for raw materials and direct labor.