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Kisachek [45]
2 years ago
5

Which of the following is a risk (or potential pitfall) of cost leadership? Multiple Choice a. Cost differences increase as the

market matures. b. Attempts to stay ahead of the competition may lead to gold plating. c. Producers are more able to withstand increases in supplier costs. d. Cost cutting in one area of the value chain might increase costs in another.
Business
1 answer:
musickatia [10]2 years ago
6 0

Answer:

d. Cost cutting in one area of the value chain might increase costs in another.  

Explanation:

Although cost leadership is an efficient way to dominate the competition,it does have potential pitfalls if not executed correctly. For example, if operating cost is decreased, the changed product feature may imply a higher marketing cost afterward. In order to be truly efficient, the cost leadership strategy has to be implemented in such a way, so it doesn't impact other value chain costs negatively (increasing them).

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BJ Company's net working capital and all of its expenses vary directly with sales. The firm is currently operating at 86 percent
Keith_Richards [23]

Answer:

C)The fem cannot exceed its internal rate of growth

Explanation:

4 0
3 years ago
Ladder Works has debt outstanding with a coupon rate of 6 percent and a yield to maturity of 6.8 percent. What is the aftertax c
damaskus [11]

Answer:

5.372%

Explanation:

Given that

Coupon rate = 6 percent

Yield to maturity = 6.8%

Tax rate = 21 percent

So by considering the above information, the after tax cost of debt is

= Yield to maturity × (1 - tax rate)

= 6.8% × (1 - 0.21)

= 5.372%

We simple multiply the yield to maturity with the after tax rate so that the approximate cost of debt could come

Ignored the coupon rate as it is not relevant for the above computation

8 0
3 years ago
A checkmark in the PR column in the general journal means the?
snow_lady [41]

Answer: Option (D)

Explanation:

Checkmark in the post reference column of general journal refers to the fact that amount has been recorded in subsidiary ledger. As for each of the general ledger account there tends to lie a subsidiary ledger and the cumulative balance of the subsidiary ledger is also presented in balance sheet. For example, there are "n" number of the vendors in a business, but in the balance sheet only one account lies under the heading creditors. This is so, as posting entry the sub-ledger of the individual vendor is referred and accordingly, the cumulative balance of all vendors is presented in balance sheet as a final general ledger account.

3 0
2 years ago
How is it possible that Switzerland, a landlocked country with almost no natural resources, is one of the richest countries in t
BARSIC [14]

Answer:

The correct answer is option D.

Explanation:

Even though the democratic republic of Congo is rich in natural resources while Switzerland has almost no natural resources, but Switzerland is among one of the richest countries while Congo is among the poorest.  

This indicates that abundant natural resources are not the only factor required for economic growth. Other factors such as human capital, physical capital, state of technology, etc. are also necessary for economic growth. Abundant natural resources cannot be efficiently utilized without these factors.  

Even if a country is not rich in natural resources but possesses these factors, it can still have high economic growth.

3 0
3 years ago
En que afecta la venta de mascotas exoticas a la biodiversidad?
andrew11 [14]

Answer:

Explanation:

"El comercio internacional de mascotas exóticas es un factor importante y creciente de la pérdida de biodiversidad y, a menudo, compromete los estándares requeridos para un buen bienestar animal; una quinta parte de los informes recientes sobre el comercio de vida silvestre se debió a la demanda de mascotas o animales para su uso en entretenimiento; cosecha insostenible de animales salvajes

8 0
3 years ago
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