A Major Drawback of Using a Low-Cost Provider Strategy Is

question 103

Multiple Choice

A major drawback of using a low-cost provider strategy is

• A)industry cost leadership.
• B)capturing volume gains and achieving economies of scale.
• C)relying on approaches to reduce costs that can be easily copied.
• D)beneficial and sustainable cost reduction.
• E)development of cost-saving technological breakthrough that cannot be readily adopted by rival firms.

---

Definitions:

Total Return

The overall financial gain or loss on an investment over a specific time period, including income from dividends and interest, as well as capital gains.

Endowment Investment

The use of donated funds, typically for universities or non-profit organizations, to generate income while keeping the principal amount intact.

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.

Statement of Financial Position

A financial statement that shows an organization's assets, liabilities, and net equity at a specific point in time, often referred to as a balance sheet.