According to Porter's Four Generic Business Strategies Framework,a ________ Strategy

question 194

Multiple Choice

According to Porter's four generic business strategies framework,a ________ strategy focuses on reducing expenses and,in turn,lowers product prices,while targeting a broad array of market segments.

• A)differentiation focus
• B)cost focus
• C)cost leadership
• D)differentiation
• E)supply focus

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Definitions:

Profit or Loss

The financial result of a company's operations, determined by subtracting total expenses from total revenues over a specific period.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into their production or delivery.

Cost Driver

A factor that influences or contributes to the expense incurred by a business activity. It is the root cause of why a particular cost occurs.

Conventional CVP Analysis

A method used in managerial accounting to understand the relationship between costs, production volume, and profits. It stands for Cost-Volume-Profit Analysis.