Deducting the Total Variable Cost from the Total Cost Results

question 44

Multiple Choice

Deducting the total variable cost from the total cost results in the

• A)overhead.
• B)manufacturing cost.
• C)fixed cost.
• D)semivariable cost.

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Definitions:

Differentiation

The process of distinguishing a product, service, or business from competitors in order to attract a particular target market.

Cost Leadership

A business strategy focusing on gaining advantage by reducing production or service costs below those of competitors.

Transnational Strategy

A business strategy that involves operating globally but with responsiveness to local needs and preferences.

Global Operations

The activities conducted by an organization to manage its business across various countries worldwide.