True Machine Inc

question 61

Multiple Choice

True Machine Inc.and One Electrona Inc.are two competing consumer electronics companies.While True Machine's COGS/Revenue is 66%, One Electrona's is 74%.What do you infer from this financial data?

• A) One Electrona has a competitive advantage over True Machine.
• B) True Machine's profit margin is higher than that of One Electrona.
• C) One Electrona is more efficient than True Machine by eight percentage points.
• D) True Machine should focus more on driving down costs, while increasing revenues, and One Electrona should focus more on increasing its fixed asset turnover.

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Definitions:

Individual Behaves

Refers to the actions or conduct of a person in response to their environment or stimuli.

Individual Reward Systems

A scheme designed to provide incentives to employees based on their personal performance, achievements, or contributions to organizational objectives.

Career Enhancement

activities or strategies undertaken to improve one’s career prospects, position, or success, including training, networking, and skill development.

Career Cycle

The progression of an individual's work life and career development stages, from initial employment to eventual retirement.