The Distinction Between Avoidable and Unavoidable Costs Is Similar to the Distinction

question 79

Multiple Choice

The distinction between avoidable and unavoidable costs is similar to the distinction between

• A)variable costs and fixed costs.
• B)variable costs and mixed costs.
• C)step-variable costs and fixed costs.
• D)discretionary costs and committed costs.

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Definitions:

Cost Leadership Strategy

A business approach aiming to become the lowest-cost producer in the industry, often by achieving economies of scale.

Competitive Advantage

The conditions that allow a company or country to produce goods or services more effectively than competitors.

Minimising Costs

Strategies and practices implemented to reduce expenses and manage financial resources efficiently within an organisation.

Portfolio Planning

A strategic process that involves making investment decisions to balance risk against performance, often in the context of project or product portfolios.