A Competitive Environment in Which There Is Weak to Moderate

question 33

Multiple Choice

A competitive environment in which there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers

• A)lacks powerful driving forces.
• B)gives each industry competitor the best potential for building sustainable competitive advantage.
• C)makes it hard for industry members to pursue a differentiation strategy.
• D)is conducive to industry members earning attractive profits.
• E)requires that industry members have low costs.

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Definitions:

Standard Cost Variances

The differences between the expected standard costs of manufacturing a product and the actual costs incurred.

Work in Process Inventories

Partially completed goods that are still undergoing the production process.

Standard Fixed Manufacturing Overhead Rate

This refers to the predetermined rate at which fixed manufacturing overhead costs are allocated to units of production, based on an expected level of activity.

Work in Process

Goods in various stages of production, not yet completed but not as raw materials, within a manufacturing process.