Discuss the three general approaches to developing competitive advantage:
What will be an ideal response?
a. Cost- or price-based competitive advantage. Firms must know the competitors' costs to be sure that they can compete on this basis by competitive matching price cuts. It is one of the most difficult approaches to competitive advantage.
b. Quality-based or differentiation advantage. This approach is a search for some points of difference that customers value and for which they are willing to pay a price premium.
c. Perceived quality or brand-based differentiation. Perceptual advantages are often used when actual product differences are small, hard to achieve, or difficult to sustain.
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Identify a benefit of using joint ventures to enter a foreign market
A) It entails minimum risk. B) It provides access to an established distribution network in the host country. C) It yields the highest returns. D) It retains full control of its investment in the host country. E) It is the best strategy for countries with psychic proximity.
To determine which accounts are affected, the accountant must email or speak with the people involved in the transaction
Indicate whether the statement is true or false
A salami fraud affects a large number of victims, but the harm to each appears to be very small
Indicate whether the statement is true or false
Which of the following statements is TRUE of costing systems?
A) A process costing system would be used by manufacturers of custom-made perfumes. B) A job order costing system would be used by manufacturers of baking utensils. C) A construction company would likely use a process costing system. D) An accounting firm would likely use a job order costing system.