A Company's Core Cost Advantages Translate Directly to an Edge

question 2

Multiple Choice

A company's core cost advantages translate directly to an edge over its competitors based on much more flexibility in its ________ as well as its ability to translate some of the cost savings to the bottom line.

• A) pricing strategies
• B) cost leadership
• C) value ratio
• D) service
• E) quality

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Definitions:

Controllable Revenues

Revenues earned by the profit center.

Income Statement

A financial report detailing a business's income, outgoings, and net profit or loss for a certain timeframe.

Responsibility Accounting Reports

Internal financial reports that track the financial performance of specific departments, managers, or units, highlighting areas of responsibility.

Profit Centers

Parts of a company treated as standalone businesses responsible for generating their own revenues and profits.