An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as __________?

Correct answer: C. cost leadership

  • A. inelastic demand
  • B. product differentiation
  • C. cost leadership
  • D. elastic demand

Explanation

Cost leadership is the strategy of achieving a lower cost structure so the organization can offer products at lower prices than competitors. Product differentiation competes through distinctive features or quality rather than primarily through low price.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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