In Order to Transform Arbol Industries from a Cost-Focused Company

question 63

Multiple Choice

In order to transform Arbol Industries from a cost-focused company to a marketing-led company, one of the new CEO's first steps was to

• A) hire a marketing manager.
• B) implement cost reductions.
• C) increase labour productivity.
• D) cut back on research and development.
• E) focus on the current stock price.

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Definitions:

Sales

The total amount of goods or services sold by a company within a specific period, generating revenue.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, department, or product and would disappear if the segment was eliminated.

Variable Expenses

Costs that change in proportion to business activity or production volume, such as materials costs, direct labor, and utilities for machinery.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, used as a benchmark for evaluating potential investments.