Explain cost competitiveness and give reasons as to why a company has to worry about its cost competitiveness. Provide a suitable example.
What will be an ideal response?
Student answers will vary, but should indicate an accurate understanding of the concept of cost competitiveness. Cost competitiveness means keeping costs low enough so that the company can realize profits and price its products (goods or services) at levels that are attractive to consumers. Examples will vary but may address the idea that consumers can use the Internet to easily compare prices from thousands of competitors. Consumers looking to buy popular items, such as cameras, printers, and plane fares, can go online to research the best models and the best deals.
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Formation of a cartel like OPEC, consisting of oil-producing companies, would most likely be illegal in the United States
Indicate whether the statement is true or false
Which one of the following COSO components of internal controls influences the tone for the organization?
a. Control risk assessment. b. Control environment. c. Information and communication. d. Monitoring.
International marketing research is much simpler to conduct than domestic research
Indicate whether the statement is true or false
After each transaction is posted from the general ledger to the accounts receivable subsidiary ledger a slash and a checkmark should be placed in the:
a. post ref. column. b. credit column. c. date column. d. debit column.