One of ValuTech's Objectives for the Year Is to Bring

question 48

Multiple Choice

One of ValuTech's objectives for the year is to bring down the firm's production costs by 5 percent. To meet this objective, managers have suggested the following alternatives:
(1) Use alternate suppliers who can provide raw materials at a lower cost.
(2) Adopt cutting-edge technology that makes the production process more efficient.
-What is the underlying assumption in the first alternative?

• A) Customers associate high prices with high quality and vice versa.
• B) Customers are more quality conscious than price sensitive.
• C) Low-cost raw materials will not affect the overall quality of the final product.
• D) The company's relationship with its current suppliers is strong.

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Definitions:

Ready Land

Land that has been developed or prepared for construction or agricultural use, often including improvements like utility connections or cleared terrain.

Land Improvements

Enhancements made to land such as landscaping, fencing, and lighting that increase the property's value.

Outdoor Lighting

Lighting specifically designed for exterior spaces, such as streets, parks, and residential landscapes to enhance visibility and aesthetics.

New Business Location

The process or event of opening or moving a business to a new geographical area or premises.