According to Porter, Threat of New Entrants Refers to ________

question 1

Multiple Choice

According to Porter, threat of new entrants refers to ________.

• A) the power that customers have over the firms
• B) the power that suppliers have over the firms
• C) the extent to which customers may use services from another industry instead of the focal industry
• D) the ability of new firms to enter an industry
• E) the intensity of competition among the organizations

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Definitions:

Traditional Costing Method

A method of accounting that assigns costs to products based on an average overhead rate. It tends to allocate indirect costs based on a single, volume-based cost driver.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product or service costing.

Direct Labor-Hours

A measure of the time workers spend on a specific task or production, often used for costing purposes.

Traditional Costing Method

An accounting approach that assigns manufacturing overhead costs to products based on a volume metric like direct labor hours or machine hours.