The Use by a Company of Its Competitive Advantage to Achieve

question 49

Multiple Choice

The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as ________.

• A)market strategy
• B)differentiation
• C)leverage
• D)focus

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Definitions:

Activity-based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Reported Product Costs

Costs associated with the production of goods that are documented and presented in financial statements, including materials, labor, and overhead expenses.

Overhead Rates

The ratio used to allocate manufacturing overhead costs to units produced or services provided, based on a specific formula or allocation base.

Setup Labour

The work and time involved in preparing equipment or machines for a new production run, often considered a manufacturing overhead cost.