Which of the Following Is a Potential Defensive Move to Ward

question 4

Multiple Choice

Which of the following is a potential defensive move to ward off challenger firms?

• A) granting volume discounts,offering better financing terms to dealers/distributors,and providing discount coupons to buyers to help discourage them from experimenting with other suppliers or brands
• B) signaling challengers that retaliation is likely in the event they launch an attack
• C) making an occasional strong counter-response to the moves of weak competitors to enhance the firm's image as a tough defender
• D) maintaining a war chest of cash and marketable securities
• E) All of these choices are correct.

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Definitions:

Predetermined Overhead Rates

A rate calculated before a period begins, used to estimate the manufacturing overhead costs that will be allocated to each unit of product.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Activity Rate

A measure used in cost accounting to allocate costs to products or services based on the activities required to produce them.

Estimated Cost

An approximation of the cost to produce goods or services, used for budgeting and planning.