Which of the Following Statements About Competitive Priorities Is TRUE

question 58

Multiple Choice

Which of the following statements about competitive priorities is TRUE?

• A) To survive, all firms in an industry must compete on the same dimensions of competitive priority.
• B) A good delivery time is less than a few weeks, irrespective of the industry under consideration.
• C) Club Med competes on the dimension of high- performance design in part by offering excellent entertaining, dining, and recreational facilities.
• D) Firms emphasizing low price have slack capacity and hold large inventories in order to be efficient.

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Definitions:

Job-Order Costing

An accounting method that assigns costs to specific batches or job orders, making it possible to track the financial inputs and outputs of individual jobs.

Manufacturing Overhead

The indirect costs associated with manufacturing that are not directly tied to the production of goods, such as utilities, rent, and maintenance of equipment.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.