In response to challenges arisen by competitors and new entrants, the strategy which must be considered by the company does include __________?
Correct answer: D. both A and C
- A. cost leadership
- B. demand inelasticity
- C. differentiated products
- D. both A and C
Explanation
A company facing competitors and new entrants may seek cost leadership, differentiation, or both to build a competitive advantage. Demand elasticity is a market condition, not one of these competitive strategies.
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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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