Which of the Following Is NOT One of the Risks

question 11

Multiple Choice

Which of the following is NOT one of the risks of a cost leadership strategy?

• A)The technology that the organization has been using changes.
• B)Achieving excessive success causing jealousy amongst competitors.
• C)Competitors can achieve viable imitations.
• D)Cost focusers achieve even lower cost in niche market segments.
• E)Proximity in differentiation is lost.

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Definitions:

Joint Production

A manufacturing process where two or more products are produced simultaneously from the same raw materials or process.

Physical Units Method

A cost allocation method used to distribute costs among different units of output, typically applied in industries with uniform products.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.

By-products

By-products are secondary products derived from the manufacturing process or chemical reaction, which may have less value than the primary product but can still be profitable.