Which of the Following Is NOT One of the Pitfalls

question 23

Multiple Choice

Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?

• A) Over-emphasizing efforts to strongly differentiate the company's product from those of rivals rather than being content with weak product differentiation
• B) Offering trivial improvements in quality,service,or performance features
• C) Overcharging for the differentiating features
• D) Adding so many frills and extra features that the product exceeds the needs of buyers
• E) Overspending on efforts to differentiate the company's product offering

---

Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.