Which of the Following Is the Best Approach to Overcome

question 8

Multiple Choice

Which of the following is the best approach to overcome entry barriers into a new business?

• A) Offer a standard product that is targeted in the recognized market.
• B) Invest in commodity or commodity-like product businesses.
• C) Enter into a slow-growing market.
• D) Use an established distribution relationship.

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Definitions:

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.

Variable Cost

Costs that change in proportion to changes in the volume of output or activity.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard labor hours expected to produce a certain quantity of goods, reflecting efficiency in labor use.

Labor Standards

The established amount of time required to perform a specific task or job, used in planning and evaluating labor efficiency.