Which of the Following Is NOT a Disadvantage of the Wait-And-See

question 143

Multiple Choice

Which of the following is NOT a disadvantage of the wait-and-see strategy?

• A) increased risk of over expansion
• B) being unable to respond if demand is unexpectedly high
• C) can be preempted by a competitor
• D) can erode market share over the long run

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Definitions:

Fixed Overhead

Refers to the regular, recurring costs associated with running a business that are not affected by production volume, including rent and insurance.

Property, Plant, and Equipment

These are long-term assets a company uses in the production of its goods and services, such as buildings, machinery, and vehicles.

Fixed Manufacturing Overhead

The set of production costs that do not change with the level of production, including salaries, rent, and insurance of the factory.

Direct Labor

The labor costs directly attributed to the production of goods, including wages of workers who are actively involved in the manufacturing process.