Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output?
A) the growth component
B) the price-recovery component
C) the productivity component
D) the cost leadership component

Question

Quizplus · Accepted Answer

The productivity component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used to produce the output. This component focuses on improving efficiency and using resources in a more effective way, which can lead to cost savings. The growth component is focused on increasing revenue and market share, the price-recovery component is focused on setting prices to maximize profit, and the cost leadership component is focused on being the lowest-cost producer in the industry.

Which Component of Strategy Measures the Reduction in Costs Attributable