What Is a Potential Drawback of a Company Focusing on Price

question 209

Multiple Choice

What is a potential drawback of a company focusing on price?

• A) It makes advertising and promotional expenses worthless.
• B) It doesn't provide the firm with a competitive advantage.
• C) It cuts into profits.
• D) It will not motivate customers to enter into a buying relationship.

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Definitions:

Materials

Inputs and supplies used in the production of goods or in the provision of services.

Completed Unit

A term used in manufacturing and production to describe a product that has finished all stages of the production process and is ready for sale.

First-in

A reference to the "First-In, First-Out" (FIFO) inventory method where the oldest inventory items are recorded as sold first.

Processing Department

A division or unit within a company where a particular phase of the manufacturing process is completed.