Which of the Following Factors Increases Pressures for Local Responsiveness

question 42

Multiple Choice

Which of the following factors increases pressures for local responsiveness?

• A) Powerful buyers
• B) Persistent excess capacity
• C) Low-cost competitors
• D) Differences in customer tastes and preferences
• E) Trade barriers

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Definitions:

Variable Costing

An accounting method in which variable manufacturing costs are included in product costs, while fixed manufacturing overhead is treated as an expense of the current period.

Net Operating Income

A financial metric that calculates a company's income after operating expenses are deducted, but before interest and taxes are subtracted.

Direct Material Cost

The expense of fundamental materials directly utilized in the production of a product.

Product Cost

The total amount of costs directly and indirectly involved in manufacturing a product or delivering a service.