​Low Cost Strategies Are Usually Found in Industries Where

question 15

Multiple Choice

​Low cost strategies are usually found in industries where

• A)​Products are not particularly differentiated
• B)Price competition tends to be fierce
• C)Both a and b
• D)​None of the above

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Definitions:

Sales Commissions

A portion of the revenue earned from selling a product or service that is paid to the sales representative or agent responsible for the transaction.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.

Variable Costs

are costs that vary in proportion to the level of production or sales volume, such as raw materials and direct labor costs.

Output

Output usually refers to the total amount of goods and services produced by a company, industry, or economy within a specific period.