When a Massive Fuel Hike Affected the Expenses of Users

question 25

Multiple Choice

When a massive fuel hike affected the expenses of users of Cadmia significantly,Flare Inc.introduced automobiles that run on solar energy.The introduction of such automobiles indicates that Flare Inc.:

• A)switched over to less sustainable fuels.
• B)recognized its competitive constraints.
• C)applied a second-mover advantage.
• D)made the best of a strategic window.

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Definitions:

Cost Per Unit

The total cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.

Costing System

A method for assessing and allocating costs of production, typically involving direct costs, indirect costs, and overheads.

Washing Mitt

A tool made of soft material used for washing surfaces, typically vehicles, without causing scratches.