Determining whether a company's prices and costs are competitive
A)requires looking at the costs of a company's internally performed activities and the costs of its suppliers and forward channel allies (distributors/dealers).
B)requires performing pricing surveys on at least a quarterly basis.
C)involves developing close relationships with buyers to determine if the market is showing signs of increasing price sensitivity.
D)typically involves the use of activity-based cost accounting by the company's key retail customers.
E)is a technique to evaluate whether a capability or resource is valuable,rare,inimitable,or nonsubstitutable.

Question

Quizplus · Accepted Answer

To determine whether a company's prices and costs are competitive, it is essential to look at the costs of its internally performed activities and the costs of its suppliers and forward channel allies. This helps in understanding the company's cost structure and pricing strategies to determine their competitiveness in the market. Pricing surveys, developing close relationships with buyers, and activity-based cost accounting may also be useful, but they are not the primary methods for determining cost competitiveness. Lastly, the technique of evaluating a capability or resource's value, rarity, inimitability, or nonsubstitutability (VRIN) is not relevant in this context.

Determining Whether a Company's Prices and Costs Are Competitive