Explain pressure exerted on an organization due to introduction of substitute products
What will be an ideal response?
Industry profits can decrease if new products or services delivering the same function are introduced to the
industry, especially if they cost less than existing offerings. Incumbent companies can reduce the pressure by
showing how their product or service is superior to those of substitutes.
You might also like to view...
Acquisition and payment processes What are the five major phases of the acquisition and payment process?
On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $81,900 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Primary incurred manufacturing costs of $351,000.
In addition, the following transactions occurred during the year: Job A-12 was completed for a total cost of $122,000 and was sold for $128,000. Job A-13 was completed for a total cost of $206,000 and was sold for $212,000. Job A-15 was completed for a total cost $61,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $12,000, and was adjusted to zero at year-end. What was the final balance in the Cost of Goods Sold account? A) $316,000 debit balance B) $340,000 debit balance C) $328,000 debit balance D) $12,000 credit balance
Which of the following is not a service included in the attestation subject matter standard?
A. Historical financial statement examination. B. Compliance attestation. C. Financial forecasts and projections. D. Service organization controls.
Forecasts may be influenced by a product's position in its life cycle
Indicate whether the statement is true or false