To reduce costs, companies pursuing a cost leadership strategy prefer to use which of the following to closely monitor and evaluate functional performance?
A) Output controls
B) Personal controls
C) Behavioral controls
D) Cultural controls
E) Input controls

Question

Quizplus · Accepted Answer

Output controls are the most effective way to monitor and evaluate functional performance in a cost leadership strategy, as it focuses on achieving specific goals and objectives through measuring the output of the operational processes. Input controls, for example, might not be effective in a cost leadership strategy because they focus too heavily on inputs and may not provide the necessary information to identify and correct inefficiencies. Personal controls, behavioral controls, and cultural controls may also not be as effective in a cost leadership strategy because they focus on individual behavior and may not directly impact overall operational efficiency.

To Reduce Costs, Companies Pursuing a Cost Leadership Strategy Prefer