In Which of the Following Cases Is the Strength of Competitive

question 61

Multiple Choice

In which of the following cases is the strength of competitive forces low?

• A)when switching costs are high
• B)when the prices of rival products are relatively high
• C)when customers are not loyal to the existing company or brand
• D)when finding rival products is difficult

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the quantity of materials purchased, used as a measure of cost control.

Direct Labor Variances

The differences between the budgeted and actual costs of direct labor used in production.

Direct Labor

The labor cost directly associated with the production of goods or services, including wages for workers who physically produce a product.

Fixed Overhead Budget Variance

The difference between the fixed overhead costs that were budgeted and the actual fixed overhead costs incurred.