Go West Airlines Inc

question 24

Multiple Choice

Go West Airlines Inc.follows a cost-leadership strategy.Which of the following firms will most likely be its direct competitor?

• A) Deerpath Airlines Inc., which follows a cost-increase strategy
• B) John Henry Railways, which follows a differentiation strategy
• C) Blue Skies Airlines Inc., which follows a low-cost strategy
• D) Blue Cabs Inc., which follows a cost-leadership strategy

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Definitions:

Direct Labor

The wages or salaries paid to workers directly involved in the production of goods or services.

Indirect Material Cost

Costs of materials that are part of the production process but are not directly traceable to a finished product.

Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately decreases the heat generated when the surfaces move.

Period Cost

Expenses incurred by a business that are not directly tied to production activities, such as administrative and selling expenses.