To Create a Competitive Advantage Through Superior Efficiency, an Organization

question 46

Multiple Choice

To create a competitive advantage through superior efficiency, an organization must

• A)make products that are much more reliable than other available products in the market.
• B)reduce the number of inputs it requires to produce a given amount of outputs.
• C)use technology to make its product unique and different than other products in the market.
• D)conduct surveys to determine whether a product will be successful in the market.
• E)create products that will attract customers and charge a premium price for those products.

---

Definitions:

Product Diversity

The range of different products or services offered by a company, which can influence strategies in marketing, production, and inventory management.

Product Costing

The process of determining the total cost associated with producing a product, taking into account all relevant expenses.

Overhead Costs

Indirect expenses related to the general operation of a business, such as rent, utilities, and insurance.

Activity-Based Costing System

A costing methodology that assigns overhead and indirect costs to specific activities related to the production of goods or services, enhancing the accuracy of cost information.