An operating income analysis of Fast Processing Company revealed the following:

Fast's operating income gain is consistent with the ________.
A) product differentiation strategy
B) product leadership strategy
C) cost differentiation strategy
D) cost leadership strategy

Question

An operating income analysis of Fast Processing Company revealed the following:

Fast's operating income gain is consistent with the ________.
A) product differentiation strategy 
B) product leadership strategy 
C) cost differentiation strategy 
D) cost leadership strategy

Quizplus · Accepted Answer

Fast Processing Company's operating income gain is consistent with the Cost Leadership Strategy. This strategy focuses on minimizing costs as much as possible to offer products at lower prices than competitors. Fast's consistent operating income gain suggests that the company has been successful in controlling its operating costs, which is the primary objective of the cost leadership strategy.

An Operating Income Analysis of Fast Processing Company Revealed the Following