To Maintain Market Share and Revenue in an Increasingly Price-Sensitive

question 172

Multiple Choice

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

• A) higher costs for the company and higher prices
• B) higher costs for the company and lower prices
• C) lower costs for the company and lower prices
• D) lower costs for the company and higher prices
• E) no change in the costs for either the company or

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Definitions:

Sales On Account

Sales made to customers for which payment is to be made in the future.

Cost Of Goods Sold

The direct expenses related to the manufacturing of products sold by a company, encompassing both materials and labor costs.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from credit sales by comparing net credit sales with the average accounts receivable.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.