Which of the Following Statements Is True in an Uncertain

question 1

Multiple Choice

Which of the following statements is true in an uncertain environment?

• A)The organization must rigidly define operating methods.
• B)A market leader strategy is the best strategy to adopt.
• C)There is less complexity in the environment.
• D)Cost leader strategy is the best strategy to adopt.

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Definitions:

Variable Expenses

Expenses that change in proportion to the level of activity or volume, such as raw material costs or utility expenses.

Selling Price

The amount for which a product is sold to the customer, generally set above the cost to include a profit margin.

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point, measured in either units or revenue.

Break-Even Point

The quantity of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.