Which Action Is a Cause for Erosion of a Small

question 79

Multiple Choice

Which action is a cause for erosion of a small business's focus strategy?

• A)Consumer demand grows.
• B)New businesses reconstruct the industry.
• C)Differences between segments grow larger.
• D)The focus strategy is imitated.

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Definitions:

Absorption Costing

An approach in accounting that comprises all costs of manufacturing, like direct materials, direct labor, and both types of manufacturing overheads (variable and fixed), in determining a product's cost.

Overproduction

The creation of more products or goods than are needed, leading to excess inventory and potential waste.

Variable Costing

An accounting approach that solely accounts for variable production expenses like direct materials, direct labor, and variable manufacturing overhead in the calculation of product costs.

Limitations

The constraints or restrictions that hinder a process, investigation, or analysis.