The Primary Opportunity Existing for Startups in Emerging Industries Is

question 31

Multiple Choice

The primary opportunity existing for startups in emerging industries is to:

• A) consolidate the industry and establish industry leadership as a result of doing do
• B) win customers by placing an emphasis on service and process innovation
• C) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
• D) capture a first-mover advantage
• E) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted amount for fixed factory overhead and the amount applied to production, based on standard cost.

Direct Materials Quantity Variance

A financial measure that shows the difference between the actual quantity of materials used and the standard quantity expected for production.

Standard Price

The predetermined cost that a company expects to pay for inventory or inputs, used for budgeting and variance analysis.

Variable Factory Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the manufacturing process.