Compare and contrast the strategies of low cost and differentiation.
What will be an ideal response?
Two generic strategies a company can use to position itself in the market:
Low cost-The company has an advantage because it operates at a lower cost than its competitors.
Differentiation-The advantage comes from having a unique good or service for which customers are willing to pay a premium price.
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The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangibleassets is
a. allocation b. depreciation c. amortization d. depletion
Discuss the problems associated with conducting developmental and evaluative performance appraisals at the same time.
What will be an ideal response?
A credit sale of $5,275 to a customer would result in which of the following?
A. A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger. B. A credit to Sales and a credit to the customer's account in the accounts receivable subsidiary ledger. C. A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger. D. A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger. E. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger.
Suppose that a firm has a degree of financial leverage (DFL) that is greater than 1.0; that is, DFL > 1. If the firm's sales decrease by 1 percent, its ______ will decrease by more than 1 percent.
A. earnings per share (EPS) B. net operating income (NOI) C. interest expense D. variable costs E. fixed financing costs