Which of the Following Is Commonly Used by Organizations to Influence

question 103

Multiple Choice

Which of the following is commonly used by organizations to influence how the Porter's five forces operate?

• A) evasion of taxes to effect governmental action
• B) selling at prices below the existing market price
• C) lobbying for governmental action
• D) selling at prices above the existing market price

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Definitions:

Entire Value Chain

The full range of activities involved in designing, producing, marketing, and selling a product or service, from initial concept to delivery to the end user.

Variable Selling

Costs associated with selling that vary directly with the level of sales activity.

Administrative Costs

Administrative costs are expenses related to the general operations of a business, including salaries of office staff, utilities, and rent.

Absorption Approach

A costing method in which all of the manufacturing costs, including both fixed and variable manufacturing costs, are absorbed into the cost of a unit of product.