A Large Software Manufacturer Attempts to Lock in Customers by Making

question 107

Multiple Choice

A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. The strategy used by the company is referred to as ________.

• A) switching costs strategy
• B) low cost operation strategy
• C) standardization strategy
• D) consumerist strategy

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Definitions:

Budgeted Cost

An estimated expense for various activities or projects, predetermined during the budgeting process.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Inventory Planning

The process of determining the optimal quantity and timing of inventory for the purpose of aligning it with sales and production capacity.

Budgeted Purchases

The estimated amount of goods or raw materials a company plans to buy over a certain period based on its budget.