According to Porter,the Processes and Systems in an Organization Pursuing

question 95

Multiple Choice

According to Porter,the processes and systems in an organization pursuing differentiation strategy must ________ to avoid negative margins.

• A) create sufficient value to cover their costs
• B) provide products at lowest costs to customers
• C) develop new technologies
• D) increase procurement

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Definitions:

Inventory Shrinkage

The loss of products between purchase from a supplier and sale to customers, often due to theft, damage, or errors.

Multiple-Step Income Statement

An income statement that separates operating items from non-operating items and calculates net income in several steps or stages.

Trade Discount

A reduction in the list price granted by a seller to a buyer, usually based on volume purchased or to maintain a business relationship.

Selling Expenses

Costs incurred directly and indirectly from the sale of goods or services, such as advertising, shipping, and sales staff salaries.