As Consumers Shift Their Support to Firms That Do Meet

question 111

Multiple Choice

As consumers shift their support to firms that do meet their needs,

• A) laggard businesses are forced to either improve or get out of the way.
• B) firms should focus on domestic markets and ignore international ones.
• C) firms must immediately adopt their competitors' strategies.
• D) firms should adhere to the idea that "if it ain't broke, don't fix it."
• E) firms should increase promotional expenditure.

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Definitions:

Time Materials

A pricing model where a customer pays based on the actual time spent on a project and the cost of materials used.

Recognition Of Variances

The process of identifying and documenting the differences between actual and budgeted costs.

Flexible Budgets

Budgets that adjust or flex with variations in activity levels or other relevant factors, allowing more accurate comparisons to actual results.

Cost Driver

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.