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givi [52]
3 years ago
8

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
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State two reasons why people work
Hunter-Best [27]

Answer:

earn money, make a change, fulfill their dreams

Explanation:

3 0
3 years ago
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LO 4.3From beginning to end, place these items in the order of the flow of goods.
mafiozo [28]

Answer:

  1. cost of goods sold
  2. raw materials inventory
  3. work in process inventory
  4. finished goods inventory

Explanation:

solution

As manufacturing industry always keep the track of costs of each inventory as product is moving from the raw material inventory in to the work in process and by the work in process it goes into the the finished goods inventory

so order of the flow of goods from beginning to end is

  1. cost of good sold  
  2. raw material inventory  : it is the total cost of material that is use in production process
  3. work in process inventory : work in process inventory is continually update work cost is record
  4. finished good inventory  : after each job work complete then product is transfer to finished goods inventory

3 0
3 years ago
Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open
harina [27]

Answer:

b. sole proprietorship.

Explanation:

  • A sole proprietorship is a single business entity that is responsible for all profits and losses and may use a sole name or a business name as a private company is known for its flexibility and thus does not need to take large loans from the government.
  • Have an advantage of less administrative paperwork and record-keeping than a corporation, have less risk of being stolen by investors.
6 0
3 years ago
The least expensive type of life insurance is _____. whole-life insurance term insurance endowment life insurance limited-paymen
lutik1710 [3]
I believe the answer is: Term insurance

Term insurance is significantly cheaper compared to other type of insurance because it only cover risk plan without considering potential return in the future.
The amount of term insurance usually paid at a fixed rate on a limited period of time.
3 0
3 years ago
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The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,470,000, $154,000 in the common stock account
devlian [24]

Answer:

The cash flow to creditors during 2014 was $139000,the amount by which net working capital investment has reduced.

The stockholders invested $241,000 more into the business

The net cash flows from asset is the $1,100,000 net firm's capital spending

Lastly,the operating cash flow is $240,000 as calculated below

Explanation:

Net working capital investment denotes the amount of cash the company parted with in 2014 in financing its current obligations.

Stockholders as the owners of the company made more cash available to the company in 2014 by investing more cash resources in it as follows:

Common stock account increased by $10000($164000-$154000)

Additional paid-in surplus increased by $300000($3090000-$2790000)

The gives $400000 cash from stockholders minus dividends of $159000

Operating cash flow

Net income                                    $0

add interest                                   $101000

Reduction in net working capital $139000

Operating cash flow                     $240000

6 0
3 years ago
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