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Northern Exposure, Inc

Question 21

Multiple Choice

Northern Exposure, Inc., produces a full line of winter outerwear, which it markets directly to customers over the internet. Until recently, its web-based advertising has been produced by Andrews Images. In the hope of capturing a larger share of its value chain's profits, Northern Exposure has decided to construct its own photographic studio and digital processing facility to produce and distribute its web-based marketing materials. This expanded scope of its business illustrates the strategic use of:


A) A structural cost driver.
B) An executional cost driver.
C) A perceptual cost driver.
D) A value activity.

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