According to Michael Porter,there Are Five Determinants of Competition

question 53

Multiple Choice

According to Michael Porter,there are five determinants of competition.An example of _____ is when a buyer purchases a large fraction of an industry's output and can demand price concessions.

• A)Threat of Entry
• B)Rivalry between Existing Competitors
• C)Pressure from Substitute Products
• D)Bargaining power of Buyers
• E)Bargaining power of Suppliers

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Definitions:

Equivalent Units

A concept in cost accounting used to express the amount of materials, labor, and overhead a company has put into production in terms of fully finished units.

First-In, First-Out Method

An inventory valuation method where the cost of the earliest goods purchased is the first to be recognized in determining cost of goods sold.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully equivalent units for the purposes of accounting.

Direct Materials

Materials that can be directly linked to the production process of a product and are essential components of the final product.