Shaun Recommends That the Organization Do Everything It Can to Lower

question 45

Multiple Choice

Shaun recommends that the organization do everything it can to lower the organizational costs required to produce widgets while still charging customers the same price for the product.Shaun is recommending the ________ strategy.

• A)cost cutting
• B)cost leadership
• C)differentiation
• D)niche

---

Definitions:

FIFO Method

An inventory valuation method where the first items purchased or produced are the first ones to be sold or used, standing for "First In, First Out."

Conversion Costs

The combination of direct labor costs and manufacturing overheads that are incurred in converting raw materials into finished goods.

Total Costs

The complete sum of all expenses, direct and indirect, incurred in producing a good or delivering a service.

Finished Goods

Finished Goods are products that have completed all stages of production and are ready for sale to customers.