Which of the Following Strategies Can Enable Companies to Gain

question 3

Multiple Choice

Which of the following strategies can enable companies to gain a cost competitive advantage?

• A) Removing frills from products
• B) Focusing on serving marginal customers
• C) Eliminating reverse engineering efforts
• D) Developing additional,exclusive functional departments

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Definitions:

Cost of Merchandise Sold

The total expense incurred by a company to buy or manufacture the goods sold during a period.

Gross Profit

The difference between revenue from sales and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Sales

The transactions involving the exchange of goods or services for money, reflecting the primary revenue source for most businesses.

Operating Income

Earnings from a company's main business activities, excluding expenses like interest and taxes.