A Company Can Gain a Cost Competitive Advantage By

question 3

Multiple Choice

A company can gain a cost competitive advantage by:

• A)reorganizing functional departments into cross-disciplinary teams.
• B)manufacturing highly customized products.
• C)providing extra options on products or services.
• D)manufacturing products in small quantities.

Determine the optimal mix of products to maximize profit or minimize costs given specific constraints.

Understand accounting for merchandise transactions using the gross and net methods.

Calculate gross profit, net income, and understand their implications on financial performance.

Apply knowledge of periodic and perpetual inventory systems in accounting entries.

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Definitions:

Unit Contribution Margin

Unit contribution margin refers to the difference between the selling price per unit and the variable cost per unit, highlighting the profitability of individual items.

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its gross revenue.

Variable Expense Per Unit

The cost that varies with each unit of product produced or sold.

Total Contribution Margin

The total amount of revenue remaining after all variable costs have been subtracted, indicating how much revenue is available to cover fixed costs and generate profit.