A Business That Strives for a Low-Cost Advantage Must Attain

question 69

Multiple Choice

A business that strives for a low-cost advantage must attain a(n) ________ cost advantage over rivals.

• A) relative
• B) evolutionary
• C) absolute
• D) potential

---

Definitions:

Ordering Costs

Expenses associated with making an order for goods or services, including administrative costs, shipping charges, and time spent on ordering processes.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and obsolescence.

Gadgets

Small electronic or mechanical devices or tools that are innovative and designed for a particular purpose.

Significant Quantities

Items or entities in considerable amounts that are large enough to warrant attention or impact assessment.