Which One of the Following Is Not a Good Example

question 58

Multiple Choice

Which one of the following is not a good example of a defensive strategy to protect a company's market share and competitive position?

• A)Adding new features or models and otherwise broadening the product line to close off vacant niches and gaps to opportunity-seeking challengers
• B)Thwarting the efforts of rivals to attack with lower prices by maintaining economy-priced options of its own
• C)Engaging in a preemptive strike strategy in an effort to discourage rivals from being aggressive
• D)Signaling challengers that retaliation is likely in the event that they launch an attack
• E)Making early announcements about impending new products or price changes to induce potential buyers to postpone switching

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Definitions:

Standard Direct Labour Rate

refers to the pre-determined cost per hour for direct labor, used in budgeting and measuring labor cost efficiency.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain number of units, multiplied by the standard hourly wage rate.

Actual Direct Labour Rate

This measures the actual cost per hour of labor directly involved in the manufacturing process.

Materials Price Variance

The difference between the actual cost of direct materials purchased and the standard cost, multiplied by the quantity purchased.