Identify a True Statement About Local Responsiveness

question 11

Multiple Choice

Identify a true statement about local responsiveness.

• A)Adapting products and operations to fit local circumstances is inexpensive.
• B)The more a company tailors a product to a local market, the higher the cost.
• C)Companies with higher costs can beat their competition through lower prices.
• D)Firms achieve economies of scale by producing products with variations.

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Definitions:

Debit Balance

A financial situation where the total debits exceed the total credits in an account, resulting in a positive account balance.

Inventory

Assets held for sale in the ordinary course of business, as well as materials and supplies used in producing goods available for sale.

Chart of Accounts

The Chart of Accounts is an organized list of all accounts in the general ledger of a company, used for recording transactions and building financial statements, categorized by assets, liabilities, equity, revenues, and expenses.

Merchandising Business

A type of business that purchases finished products and sells them to consumers, making a profit from the markup.