Which of the Following Are Not Distinguishing Features of a Company's

question 57

Multiple Choice

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

• A)It develops core competencies that allow differentiating attributes to be incorporated at a low cost.
• B)It has unmatched efficiency in managing essential value chain activities.
• C)It seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes).
• D)It seeks to be the low-cost provider in the largest and fastest-growing (or best)market segment.
• E)It enjoys a competitive advantage based on more value for the money.

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Definitions:

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Lubrication Cost

pertains to lubrication expenses that vary with the level of machinery operation or production volume.

Machine Hours

A measure of the total time that production equipment operates within a specific period.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much contribution towards covering fixed costs and generating profit.