The Major Difference Between a Low-Cost Provider Strategy and a Focused

question 86

Multiple Choice

The major difference between a low-cost provider strategy and a focused low-cost strategy is the

• A)amount of outsourcing involved.
• B)length of the managerial experience curve.
• C)size of the buyer group to which a company is appealing.
• D)number of upscale attributes incorporated into the product offering.
• E)production methods being used to achieve a low-cost competitive advantage.

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Definitions:

Cash Receipts

The money received by a business from transactions, including sales, debt collections, and other cash inflows.

Cash Payments

Cash payments refer to transactions in which money is exchanged immediately for goods or services, without the use of credit.

Accounts Payable

Liabilities or money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

Inventory Balance

The total value of all the goods and materials held by a company at a specific point in time.