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notsponge [240]
3 years ago
15

The typical risks of a cost leadership strategy include:

Business
1 answer:
shepuryov [24]3 years ago
4 0

Answer:

The correct answer is b. production and distribution processes becoming obsolete.

Explanation:

Cost leadership is where the company intends to be the lowest cost producer in its industrial sector. The company has a broad picture and serves many segments of the industrial sector, and can still operate in related industrial sectors. The breadth of the company is often important for its cost advantage. The sources of cost advantages are varied and depend on the structure of the industrial sector. They can include the persecution of economies of scale of own technology, preferential access to raw materials.

A successful cost leadership strategy is disseminated throughout the company, as evidenced by high efficiency, low overhead, limited benefits, waste intolerance, thorough review of budget requests, extensive control elements, the rewards linked to the concentration of costs and the extensive participation of the employees in the attempts to control the costs.

Some risks of following cost leadership is that competitors could mimic the strategy, decreasing the profits of the industry in general; that technological advances in the industry could make the strategy ineffective or that the interest of the buyers could be diverted towards other characteristics of differentiation besides the price.

You might be interested in
Barney builds custom wooden birdhouses. he can make 150 birdhouses per month and sell them for $50 each. his average total cost
musickatia [10]

Answer:

125 birdhouses per month

Explanation:

Barney=150 birdhouses

Total product=150 birdhouses

If Barney hires Fred

Fred =125 birdhouses

Total product=150+125

=275 birdhouses

Marginal product can be defined as a change in output as a result of a change in variable inputs

It can be calculated as follows

Marginal product=change in total product/change in variable inputs

=275-150/1

=125/1

=125 birdhouses per month

4 0
3 years ago
On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Al
erik [133]

Answer:

Given:

On January 2, 2016:

Issued 15,000 shares of $10 par value

Common stock for $15 per share

On March 1, 2016: Alpha reacquired 1,000 of these shares when they were trading $20 each.

On September 1, 2016: Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share.

3 0
3 years ago
Wiley Consulting purchased $7,800 worth of supplies and paid cash immediately. Which of the following general journal entrie wil
mel-nik [20]

Answer: Debit Supplies and Credit Cash

Explanation: From the above question, Wiley paid cash for the supplies and in accounting you debit the receiver and credit the giver.

In the question above, the supplies account is receiving value while the cash is giving value. Then the right journal entry is to Debit supplies and credit cash.

4 0
3 years ago
how does international expansion provide companies with a competitive advantage? (select all that apply.)
Mariulka [41]

Companies also choose worldwide expansion to advantage an side over their competition. as instance, groups that enlarge in markets in which their competition do now not function often have a first-mover gain, which permits for them to construct robust emblem awareness with purchasers earlier than their competition can do so.

A company , abbreviated as co., is a prison entity representing an affiliation of people, whether herbal, prison or a mixture of both, with a selected objective. agency participants share a not unusual cause and unite to attain specific, declared desires.

An organization is a felony entity fashioned by a collection of individuals to engage in and operate a business—business or industrial—corporation. A agency can be prepared in numerous approaches for tax and economic legal responsibility functions relying at the company law of its jurisdiction.

Learn more about company  here:brainly.com/question/25818989
#SPJ4

6 0
1 year ago
Profit margin is defined as:
olga_2 [115]

Answer: C net income divided by net sales

Explanation:

Net profit margin is calculated by

dividing the net profits(income) by net sales, or by dividing the net income by

revenue realized over a given time period.

Profit margin is one of the commonly used profitability ratios to gauge the degree to which a company or a business activity makes money. It represents what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the business has generated for each dollar of sale. For instance, if a business reports that it achieved a 35% profit margin during the last quarter, it means that it had a net income of $0.35 for each dollar of sales generated.

3 0
3 years ago
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