Which of the Following Should an Organization Do in Order

question 41

Multiple Choice

Which of the following should an organization do in order to obtain a competitive advantage through superior innovation?

• A) Reduce the number of components that go into its products
• B) Decrease the number of product attributes and lower the price of its products
• C) Set up a strong team to handle after-purchase support
• D) Produce products with technologies that have not been used previously
• E) Provide high-quality products to create a brand-name reputation for its products

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Definitions:

Gross Profit to Cost

A financial ratio that measures the profitability of a company by comparing its gross profit to its total cost of goods sold.

Gross Profit to Sales

A financial ratio that determines the percentage of gross profit relative to sales revenue, indicating the efficiency of production and pricing.

Theoretical Assumptions

Foundational ideas or principles assumed to be true without immediate empirical testing, used as the basis for further theory development or analysis.

Conservatism

An accounting principle that advises to exercise caution and report expenses and liabilities as soon as possible, but to delay the recognition of revenues and assets.