An Advantage of Being a First Mover Is That

question 31

Multiple Choice

An advantage of being a first mover is that:

• A)the pioneering costs are minimal.
• B)there are well-defmed distribution channels.
• C)there is no risk of building the wrong resources.
• D)the focus is always on the mass market.
• E)there is an opportunity to increase sales volume ahead of rivals.

---

Definitions:

Variable Cost

Expenses that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Transfer Price

The rate at which products and services are exchanged among departments within the same organization.

Opportunity Cost

The value of the best alternative that is foregone when a particular decision is made.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.