________ Is a Firm's Ability to Implement Low Costs Compared

question 69

Multiple Choice

________ is a firm's ability to implement low costs compared to its competitors with productivity improvements, increased efficiency, reduction of waste, and the use of cost control.

• A) Strategy
• B) Product differentiation
• C) Cost leadership
• D) The balanced scorecard

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Definitions:

Variable Costs

Costs that change in direct proportion to sales.

Price Elastic

Refers to how sensitive the demand for a product is to changes in its price; high elasticity indicates demand significantly changes with price adjustments.

Price Inelastic

Describes a situation where the demand for a product does not significantly change with a change in its price.

Price Volatile

Referring to how quickly and to what extent the price of a commodity or asset can change within a short period of time.