David Works in a Small Manufacturing Firm That Makes Customized

question 30

Multiple Choice

David works in a small manufacturing firm that makes customized office furniture. He feels it is important to work directly with customers to design high-quality furniture that precisely meets their needs. He believes that doing so would create more value for customers and provide a better relationship between the price of the product and its benefits. In the given scenario, David most likely _____.

• A)uses mass production
• B)focuses on efficiency
• C)focuses on effectiveness
• D)uses undifferentiated marketing

---

Definitions:

Profitability

Refers to a company's ability to generate earnings over its costs and expenses.

Controllable Margin

Controllable margin refers to the amount of profit or income that can be directly influenced by the management's decisions, usually excluding fixed costs and overhead.

Operating Assets

Assets that are used for day-to-day functioning of a business and generating revenue, such as inventory, machinery, and buildings.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the ratio of net profit to the initial cost of the investment.