Which of the Following Is True Regarding the Differentiation Strategy

question 32

Multiple Choice

Which of the following is true regarding the differentiation strategy?

• A)Differentiation strategy cannot protect a company from price sensitivity.
• B)Brand images play a negligible role in differentiation strategies.
• C)Companies using the differentiation strategy have to build large-scale facilities.
• D)Companies have to control their overhead costs to use the differentiation strategy.
• E)Companies achieve above-average returns if they succeed in their differentiation strategy.

Understand the concept of departmentalized overhead rates and their application.

Calculate the unit product cost for jobs.

Analyze the impact of actual manufacturing overhead costs on applied rates and prices.

Understand the differences between plantwide and departmental overhead rates.

---

Definitions:

North Atlantic Treaty Organization

An intergovernmental military alliance between North American and European countries, established in 1949 for mutual defense against aggression.

Military Alliance

An agreement between two or more nations to provide mutual support and defense in case of a military conflict or threat.

Latin America

A region in the Western Hemisphere, comprising countries in South and Central America, the Caribbean, where Romance languages are predominantly spoken.

Hollywood

The center of the United States film industry, located in Los Angeles, California, known for its historic studios and as a cultural icon for entertainment.