According to Porter,when There Are Many Alternative Products or Services

question 125

Multiple Choice

According to Porter,when there are many alternative products or services to the ones your business provides:

• A)threat of substitute products or services is high.
• B)supplier power is high.
• C)buyer power is low.
• D)threat of substitute products or services is low.

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Definitions:

Job Order Cost

An accounting method that tracks the expenses of manufacturing a specific job or batch of goods, including materials, labor, and overhead.

Similar Products

Products that are alike in function or specifications, often compared for market competition analysis or consumer choice evaluation.

Process Cost System

An accounting method used to track production costs when products are indistinguishable from each other and produced on a large scale.

Job Order Cost

A method of cost accounting that gathers the costs of manufacturing a specific batch or job, including labor, material, and overhead.