A Low-Cost Position Is Most Appropriate When

question 49

Multiple Choice

A low-cost position is most appropriate when:

• A) the power of buyers is low and barriers to entry are high.
• B) economies of scale are relatively unimportant in manufacturing products.
• C) customers have very different needs and uses for the industry's products.
• D) product innovation is the key competitive factor.
• E) industry rivalry is high and customers are very sensitive to prices.

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Definitions:

General Journal

A book or digital record used in double-entry bookkeeping to chronicle all financial transactions in chronological order, allowing for the tracking of all company transactions.

Accounting System Design

The process of defining the structure, components, and processes of an accounting system tailored to meet specific financial reporting and management needs.

Internal Controls

Systems and procedures implemented by a company to ensure the integrity of financial and accounting information.

Information Processing

The collection, manipulation, storage, retrieval, and classification of information.