Using an Information System to Make Customers And/or Suppliers Reluctant

question 96

Multiple Choice

Using an information system to make customers and/or suppliers reluctant to change to another competitor is called:

• A) Growth strategy
• B) Building switching costs
• C) Creating alliances
• D) Raising barriers to entry

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Definitions:

Standard Labor Cost

A predetermined cost of the labor time required to produce a unit of output, factoring in wages, benefits, and other labor-related costs.

Sales Volume Variance

The difference between the actual units sold and the budgeted units sold, multiplied by the standard selling price per unit.

Average Price

The mean price of a good or service calculated by dividing the sum of the prices of all the items by the number of items.

Overhead Volume Variance

Overhead volume variance is the difference between the budgeted overhead at standard production volumes and the actual overhead incurred due to variance in production volume.