Which of the Following Forces of the Five-Forces Model Will

question 3

Multiple Choice

Which of the following forces of the five-forces model will exemplify Wal-mart's ability to buy products from its suppliers at rock-bottom prices?

• A) Bargaining power of suppliers
• B) Bargaining power of customers
• C) Rivalry among existing competitors
• D) Threat of substitutes

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Definitions:

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit.

Raw Materials Price

The cost of raw materials required in the manufacturing process, a critical factor in the overall production cost and pricing strategy.

Variance

The difference between a planned, budgeted, or standard amount and the actual amount incurred or realized.

Revenue Variance

The difference between actual revenue earned and expected revenue, often used in budgeting and financial analysis.