Which of the Following Exemplifies an Intangible Durable Strategy Used

question 25

Multiple Choice

Which of the following exemplifies an intangible durable strategy used by firms to prevent competition?

• A)Merging with its competitors
• B)Using brand name or trademark as a reflection of product quality
• C)Advertising
• D)Investing in specific assets

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Definitions:

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.

Controllable Variance

The difference between actual budgeted costs and the controllable costs within a budget period.

Fixed Factory Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, depreciation, and salaries of factory supervisors.

Volume Variance

The difference between the expected volume of sales or production and the actual volume, which can impact costs and profitability.