A company that looks for a niche in the market is following which strategy?
A) cost leadership
B) differentiation
C) focus
D) turnaround
Answer: C
Explanation: The key to a focus strategy is for a company not to try to appeal to a broad market, but rather to find a narrow niche in the market and serve it with something extraordinary and special. This makes "focus" the correct response and eliminates "differentiation" and "cost leadership" as possible correct responses because both try to appeal to broad audiences. A turnaround strategy is a corporate rather than a competitive strategy, so that choice is not correct.
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Sprinkle Co. sells its product for $20 per unit. During 2013, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labor $3, and variable overhead $1. Fixed costs are: $240,000 manufacturing overhead, and $30,000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is
a. $8. b. $9. c. $13. d. $14.
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Indicate whether the statement is true or false