A Company That Manufactures Laundry Detergent Makes Use of Salespersons

question 84

Multiple Choice

A company that manufactures laundry detergent makes use of salespersons for door-to-door selling to directly sell the products to the customers.The company allows customers to make payments for the products within a period of one month.This is an example of a(n) :

• A)focused differentiation strategy.
• B)focused cost leadership strategy.
• C)cost leadership strategy.
• D)pull strategy.
• E)adaptive strategy.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and labor expenses, adjusting as the volume of production increases or decreases.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers and the terms and conditions for extending credit.

Incremental Cash Flow

The extra money a company gains by embarking on a project or investment.

Credit Policies

Guidelines a company follows to determine credit terms for customers, including who is eligible for credit and on what terms.