Which of the Following Aspects of a Company Would Not

question 10

Multiple Choice

Which of the following aspects of a company would not be considered a critical success factor,for a company that competes on differentiation?

• A)Cutting edge research and development.
• B)Excellent customer service.
• C)Award-winning product quality.
• D)Continually beating competitors to the market with new,innovative products.
• E)High level of production efficiency.

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Definitions:

Differential Costs

The difference in total cost that will result from selecting one choice over another.

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.