All categories

3 years ago

Which of the following is a risk (or potential pitfall) of cost leadership?

Business

1 answer:

Lapatulllka [165]3 years ago

7 0

Answer:

a. Cost cutting may lead to the loss of desirable features

Explanation:

In the business market, sometimes there occurs a price war between the various companies regarding the same type product and each company reduces the price to as minimum as possible to take the cost leadership in the market. Some drawbacks that occur in such a strategy of companies are listed here -

There is a tight control on the expenses during the manufacturing of products which often results in loss of desirable features in the products
No new innovations are made as companies focus mainly of the current product
The feedback of customers seem to be of no importance in such conditions
This strategy promotes the lower quality products in the market

You might be interested in

________ is/are changes in products, services, or processes that radically change an industry's rules of the game.

sashaice [31]

Disruptive innovation are changes in products, services or processes that radically change an industry's rules of the game. By doing this, they are able to create a new market or change the value to an existing market. The disrupt the existing market and value by improving products or services.

7 0

3 years ago

Select the correct answer from each drop-down menu.

LUCKY_DIMON [66]

Answer:

1. Technical improvements cause production costs to decline, which causes supply to increase and prices to decrease.

2. Decreased unemployment causes consumer incomes to increase which causes demand to increase and hence price to increase.

Explanation:

Demand refers to a consumer's desire to purchase a particular good or service at a given time for a specific price. Supply on the other hand, is the willingness of a producer to produce a particular good or service at a given time for specific price.

1. Production cost is a factor that influences supply. For example, cost of labor or raw material cost. When production costs fall, more products can be produced at a lesser cost. Hence'

The supply curve shifts right from S1 to S2.
This causes quantity supplied to increase from QS1 to QS2
And price to fall from P2 to P1. Please refer Diagram 1 in attachment.

2. When unemployment decreases, it means that more people are working in the economy and hence their incomes are also higher. This means there is a higher purchasing power and also higher demand for products. Hence,

The demand curve shifts from D1 to D2.
This causes quantity demanded to increase from QD1 to QD2
And price to increase from P1 to P2. Please refer Diagram 2 in attachment.

7 0

3 years ago

Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 201

Butoxors [25]

Answer:

Hawkins Inc.

For 2017, the amount of income taxes payable for Hawkins Inc. is:

= $572,600.

Explanation:

a) Data and Calculations:

2017 tax rate = 35%

Pre-tax accounting income = $1,800,000

2018 Rent from Barrett Co. 64,000

Less:

Exempt Municipal bond income (80,000)

Tax Depreciation (in excess of

book depreciation) (40,000)

2018 Installment sales revenue (108,000)

Adjusted taxable income $1,636,000

Income tax (35%) 572,600 (35% of $1,636,000)

Tax expense (provision) 630,000 (35% of $1,800,000)

b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income. The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.

5 0

2 years ago

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, wha

krek1111 [17]

The necessary adjusting entry to record inventory shortage would be:

“Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000.”

Cost of Merchandise Sold is the cost of goods and services that correspond to sales made to customers. In this case, we need to decrease ending inventory by the quantity of these goods ($5,000) that either were shipped to customers or assigned as being customer-owned under a certain agreement. Meanwhile, the merchandise inventory is the cost of goods on hand and is available for sale ($5,000).

6 0

3 years ago

Click this link to view O*NET's Work Activities section for Architects. Note that common activities are listed toward the

Oxana [17]

Answer:

communicating with persons outside of the organization

drafting, laying out, and specifying technical devices, parts, and equipment

making decisions and solving problems

thinking creatively

4 0

3 years ago

Read 2 more answers