What Are the Pitfalls of the Overall Cost Leadership Strategy

question 32

Essay

What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.

---

Definitions:

Accounts Receivable

Accounts receivable is a balance sheet item representing money owed to a business for goods or services delivered but not yet paid for by customers.

Indirect Statement

A financial statement method typically used in cash flow statements to adjust net income for changes in non-cash accounts.

Operating Activities Section

A part of the cash flow statement that shows the cash inflows and outflows resulting from the company's primary business activities.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and signifies a claim on part of the corporation's assets and earnings.