Which of the Following Is a Reason for a Firm

question 121

Multiple Choice

Which of the following is a reason for a firm to choose technology trading to acquire new technology?

• A) for proprietary ownership
• B) for cost effectiveness
• C) to be the sole user of a technology
• D) to gain competitive advantage
• E) to be the first mover in the industry

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Definitions:

Target Costing

A pricing strategy in which the selling price and profit margin are used to determine the maximum cost that can be incurred on a product, with the aim of ensuring competitiveness and profitability.

Target Profit

The specific net income a business intends to reach within a designated timeframe.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Target Costing

A pricing method that involves determining a product's selling price and then subtracting desired profit to arrive at a target production cost.