Which of the Following Is an Example of a Best-Cost

question 12

Multiple Choice

Which of the following is an example of a best-cost provider strategy?

• A) Different car manufacturers compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000.
• B) Aerodoungle's Eridla brand is considered a luxury car. Some of Eridla's models like the ES model, however, are in the midrange of prices for cars.
• C) Global furniture retailer Rusicwood provides customers with affordable solutions for better living by offering home furnishings that combine good design, function, and quality with low prices.
• D) Wild Hog builds motorcycles that target only the high end of the heavyweight market-the high-end premium cruiser market-with names such as Wolf, Mastiff, and Bulldog.
• E) Streetsuit's everyday low prices (EDLP) strategy hinges upon its ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.

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Definitions:

Operating Activities

Activities related to the day-to-day functions of a business that involve generating revenue, paying expenses, and the net cash flow from these operations.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Amortization

The process of spreading out a loan into a series of fixed payments over time, or the gradual reduction of the book value of an intangible asset over its useful life.

Cash Flows

The total amount of money being transferred into and out of a business, affecting the company's liquidity.