Which of the Following Is a Defining Characteristic of a Focused

question 128

Multiple Choice

Which of the following is a defining characteristic of a focused cost leadership?

• A) It offers a regular product to a common market segment.
• B) It seeks the lowest costs of operations within a special market segment.
• C) It analyzes business opportunities according to market growth rate.
• D) It focuses on substantial penetration of expanding markets.
• E) It involves decreasing the size of operations.

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Definitions:

Receivable Turnover

Receivable turnover is a financial ratio that measures how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock levels.

Current Ratio

A metric assessing how effectively a company can fulfill its short-term financial commitments with its assets on hand.

Acid-test Ratio

A stringent measure of liquidity that evaluates a company's ability to cover its short-term liabilities with its most liquid assets.