If a company eliminates all discretionary costs due to a severe recession,this could ________.
A) ensure that the company reports a net loss
B) ensure that the company reports a net profit
C) reestablish a company's competitive position in an industry
D) impair a company's competitive position in an industry

Question

Quizplus · Accepted Answer

Eliminating all discretionary costs may impair a company's competitive position in an industry as it may lead to a reduction in the quality of goods or services, and inability to invest in innovation or marketing strategies. This may result in the loss of customers to competitors who are continuing to invest in these areas.

If a Company Eliminates All Discretionary Costs Due to a Severe