Which of the Following Is Not a Major Question to Ask

question 5

Multiple Choice

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

• A)How many companies in the industry have good track records for revenue growth and profitability?
• B)What strategic moves are rivals likely to make next?
• C)What are the key factors for future competitive success?
• D)Does the outlook for the industry offer good prospects for profitability?
• E)What forces are driving changes in the industry,and what impact will these changes have on competitive intensity and industry profitability?

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Definitions:

Least-squares Regression

Least-squares regression is a statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed and predicted values.

Variable Cost

A cost that changes in proportion to changes in the volume of activity, such as materials and labor directly involved in producing a product.

Machine Hour

A measurement of productive time, indicating how many hours a particular machine or piece of equipment has been operated.

High-low Method

In cost accounting, a strategy for estimating fixed and variable costs by looking at the peak and bottom activity levels.